FundGuard, the AI-powered SaaS investment management and asset servicing enterprise platform, announced on Tuesday that it has closed a $12 million Series A funding round.
The financing was led by Team8 and existing investors Blumberg Capital and LionBird Ventures. New investors participating in the round include banking and asset management executives Jack Klinck, a former State Street, and Bank of New York Mellon management committee member; Heidi Miller, an HSBC board director and former President of JP Morgan International; Jay Mandelbaum, former Head of Strategy at JP Morgan Chase, and member of both JP Morgan Chase’s and Citigroup’s management committees; Stanton Green, a fintech leader and former senior managing director at Guggenheim Capital, as well as Mindset Ventures and Maccabee Ventures.
The financing round brings the total amount of capital raised by the company to $16 million.
FundGuard is an AI-powered, cloud-based enterprise operating platform for asset managers, asset owners, custodian banks, and fund administrators to manage investments across mutual funds, insurance, pension, and more.
The company said the platform “replaces the decades-old solutions in the marketplace today that are no longer able to address growing industry demand for a truly electronic, cross-asset solution to streamline workflows, identify anomalies, and generate actionable insights.”
The financing will spur product development to support FundGuard’s partnerships with several of the world’s largest fund administrators and asset managers in addition to meeting increasing demand from alternative funds and insurance companies, the company said.
“The industry is ripe for disruption with legacy market infrastructure for investment management struggling to support today’s volumes, complexity of assets, and need for efficiency given the continued fees pressure. There is growing demand for a fully automated, scalable solution that improves operational efficiency and dramatically reduces costs,” said Lior Yogev, FundGuard CEO and co-founder.
“FundGuard has a bold vision for transforming a large and significantly underserved market,” said Sarit Firon, Managing Partner at Team8 Capital, “FundGuard’s solution has a significant, fast-growing foothold across the investment management industry, and the founding team has a flawless track record in execution that will serve the firm well during its next stage of growth.”