AI investment accounting platform co FundGuard raises $100m

Israeli cloud-native, AI-powered, multi-asset class investment accounting platform developer FundGuard today announced the completion of a $100 million Series C financing round. The investment was led by Key1 Capital in participation with new investors including Euclidean Capital and funds managed by Hamilton Lane (Nasdaq: HLNE) and participation from existing strategic investors, and the company’s earliest financial investors: Blumberg Capital and Team8. This latest round, which is believed to have a secondary element, in which investors and employees sold shares, brings the total raised by FundGuard to $150 million.

No valuation was disclosed but estimates are that the round was completed at a vauation of $300-400 million. The company declined to comment.

FundGuard was founded in 2018 by CEO Lior Yogev, CTO Yaniv Zecharya and VP R&D Uri Katz, former officers in the IDF’s 8200 intelligence unit, and has its management offices in Tel Aviv’s Azrieli Center. The platform, designed for asset managers, asset owners, custodian banks and fund administrators transforms investment operations by leveraging cloud-native technology and AI capabilities to modernize and streamline investment accounting operations and workflows. Key to the company’s success has been the combined expertise of its leadership, including experienced funds industry executives and enterprise cloud technology and data science innovators.

Managing mutual funds and ETFs has been conducted for decades, but for the big entities it is about managing old software, usually developed in the 80’s or 90’s, with complicated data backup operations and the difficulty of displaying information in real time. In the old systems, for example, a continuous backup activity is required that takes place at night or on weekends, which makes work for IT systems personnel difficult.

Fundguard defines its software as a “fund management operating system,” which manages all information about the fund’s activity – buying or selling transactions of securities, bonds, options and futures, monitors their activity in real time and presents performance in real time and produces financial reports on demand.

Yogev said, “FundGuard is shaping the future of investment and fund accounting. This latest significant investment round reflects the ongoing support of the industry, the confidence our investors have in the value our products bring to the market, and their trust in our leadership and strategic roadmap.”

Key1 Capital cofounder and managing partner Amit Pilowsky said, “It is rare to witness a company at this stage receiving significant attention from the largest and most sophisticated clients in an industry dominated by incumbents. This serves as a testament to just how valuable and unique FundGuard’s solution is. FundGuard is just scratching the surface of its potential to revolutionize the investment management industry, and we are honored to be their partner.”

Published by Globes, Israel business news – en.globes.co.il – on March 25, 2024.

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