"Banks' bank" Capitolis raises $200m at $1.9b valuation
Capitolis, a fintech company founded by Israeli entrepreneur Gil Mandelzis, raised $220 million ($120 million equity, $100 million debt) at a $1.9 billion valuation. The round was led by customers including Citi, Nomura, Bank of America, and Tradeweb Markets. The company, which operates a platform for banks to share capital and manage regulatory risk, has grown revenue 65% in the past year and plans to reach operating breakeven. It recently acquired eSecLending for $200 million.
Capitolis, a fintech company founded by Israeli serial entrepreneur Gil Mandelzis, raised $220 million ($120 million equity, $100 million debt) at a $1.9 billion valuation. The round was led by some of the company's customers: Citi, an existing investor, along with new strategic investors Nomura, Bank of America, and Tradeweb Markets. Existing investors JP Morgan, Barclays, BNP Paribas, State Street, and UBS also participated. The debt financing came from First Citizens Innovation Banking, Hercules Capital, and Pinegrove Venture Partners. The company, which describes itself as a kind of Airbnb for banks, enables them to share risk and meet post-2008 regulations. It maintains a development center in Tel Aviv. Revenue grew 65% in the past year, and the company plans to reach operating breakeven next year. Estimated 2026 revenue is $125-130 million. The financing round follows four acquisitions, the latest being eSecLending for $200 million. Capitolis employs 320 people, 60 of them in Tel Aviv.