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Asset-mgmt A.I. startup FundGuard raises $12m

The Series A funding round will drive product development, entry to new markets and grow the executive team.

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FundGuard, an AI-powered SaaS investment management and asset servicing enterprise platform, has closed a $12 million Series A funding round. The financing is being led by Team8 and existing investors Blumberg Capital and LionBird Ventures.

A number of Wall Street executives are also participating in the round as individual investors, including: 

  • Jack Klinck, former management committee member at both Bank of New York Mellon and State Street
  • Heidi Miller, HSBC board director and former president of J.P. Morgan International
  • Jay Mandelbaum, former head of strategy at J.P. Morgan Chase, and member of both J.P. 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 New York-based FundGuard to $16 million, said Lior Yogev, FundGuard CEO and co-founder. “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.

“FundGuard has a bold vision for transforming a large and significantly underserved market,” said Sarit Firon, managing partner at Team8 Capital in Tel Aviv.

The startup’s A.I.-powered, cloud-native platform enables banks, asset managers, and fund administrators to drive efficiencies and enhance transparency by providing a real-time, single source of truth for funds, he said.

Clients include asset managers and fund administrators that manage investments across mutual funds and ETFs, alternatives, insurance, and pensions.

The investment 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 FundGuard team has built an immensely scalable, cloud-native, intelligent platform to replace cumbersome legacy systems and their innovative offering is precisely what the asset management world urgently needs today,” said Klinck.

FundGuard has also hired Kirk Littleton and Alan Schneider as sales directors in New York.

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Asset-mgmt A.I. startup FundGuard raises $12m