Israeli fintech startup FundGuard raises $100M for global expansion of its AI-based investment platform

Fundguard, an Israeli fintech startup renowned for its AI-powered global asset servicing platform, has just announced a significant milestone. The company revealed on Monday that it has successfully raised $100 million in a private funding round, marking a substantial step forward in its growth trajectory.

The Series C round, which brings the company’s total funding to $150 million to date, was led by Key1 Capital and new investors including Euclidean Capital and funds managed by Hamilton Lane. Existing strategic investors Citi and State Street also participated, plus the company’s earliest financial investors such as Blumberg Capital and Team8.

Catering to a diverse clientele including asset managers, banks, and service providers, Fundguard specializes in the management of mutual funds, hedge funds, pension funds, and various other investments.

The infusion of capital brings Fundguard’s total funding to an impressive $150 million to date, a testament to the investor confidence in the company’s vision and capabilities. In light of this successful funding round, Fundguard has expressed its intention to allocate the raised funds towards continuous product innovation and the expansion of its customer base.

This latest funding arrives two years after the startup secured $40 million in Series B funding. Back then, strategic heavyweights Citi and State Street Corp led the charge, joined by early backers like Blumberg Capital, LionBird Ventures, and Team8 Capital.

Founded in 2018 by Lior Yogev (CEO), Uri Katz, and Yaniv Zecharya, Fundguard has swiftly positioned itself as a frontrunner in the industry, offering comprehensive solutions for asset managers and fund administrators. With a focus on digital transformation, operations automation, AI-driven insights, and cloud migration, the company continues to pioneer innovations that redefine investment management.

According to reports from Israeli media, this latest investment values the company at up to $400 million, underlining its growing significance within the fintech landscape. Yogev said the funding will play a pivotal role in advancing the company’s mission of reshaping the future of investment and fund accounting.

“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,” Yogev said.

Amit Pilowsky, Co-Founder and Managing Partner at Key1 Capital, lauded Fundguard’s pioneering technology platform, highlighting its ability to empower clients with timely, accurate, and cost-efficient solutions. Pilowsky expressed confidence in Fundguard’s potential to revolutionize the investment management industry, citing its remarkable traction among major industry players.

“The exceptional team at FundGuard has developed a unique, cutting-edge technology platform over the last five years, empowering asset managers and fund administrators with a timely, accurate, and cost-efficient solution to support their investment accounting operations,” said Amit Pilowsky, Co-Founder and Managing Partner, Key1 Capital. “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.”

In a testament to its expanding footprint, Fundguard has recently secured new client acquisitions and established offices in key financial hubs such as Boston, London, and Toronto. Leveraging cloud-native technology and AI capabilities, the company aims to modernize investment accounting operations and streamline workflows, facilitating a seamless transition to the cloud.

“We are thrilled to partner with our newest investors,” said John Lehner, President, FundGuard. “With their support and partnership, and the continued dedication of our existing investors and talented team, FundGuard is poised for continued growth and market expansion.”

FundGuard founders credit: Nati Levi