Andreessen Horowitz Leads $90M Investment In Israeli Saas Platform Capitolis

Saas company Capitolis, a financial resource optimization provider for capital markets, raised $90 million in a Series C investment round led by Andreesen Horowitz (a16z), a Silicon Valley-based VC firm that has backed companies like Facebook, Lyft, Slack, and Pinterest.

The funding round included participation from existing investors Index Ventures, Sequoia Capital, S Capital, Spark Capital, SVB Capital, Citi, J.P. Morgan and State Street and brings Capitolis’ total funding to date to $170 million.

Capitolis was founded in 2017 and now says it works with more than 75 financial institutions, hedge funds and asset managers who leverage its platform to “free up capital and safely remove barriers that would otherwise restrict growth.”

“We launched Capitolis four years ago to fundamentally re-imagine how the capital markets operate,” said Gil Mandelzis, CEO and founder of Capitolis. Just as Airbnb has brought more capacity to the lodging industry, Capitolis is bringing meaningful additional balance sheet, capital and financing capacity to the market that is structurally and meaningfully constrained to create healthier, more vibrant and growing financial markets.”

“What sets Capitolis apart from other financial services players is the sheer scale of management’s ambition and the substantial talent, technology and capital milestones they have achieved in bringing their innovative services to market,” said Alex Rampell, partner at a16z. “We are proud to support Capitolis through this period of rapid growth.”

“At Citi, we have been impressed with Capitolis’ technology platform and their thoughtful, strategic approach to fostering a more efficient marketplace,” said Okan Pekin, global head of Securities Services at Citi. “We feel the opportunity in front of them is significant and there is a long runway for growth.”

Capitolis said it intends to use the funds from this latest round to drive further innovation in its technology and product development, bolster customer support and sales and grow its team from 90 employees to over 150 by year’s end.

The company has offices in Tel Aviv and New York.