Israeli Fintech Firm Capitolis Raises $220 Million at $1.9 Billion Valuation
Israeli fintech firm Capitolis has raised $220 million in equity and debt, reaching a $1.9 billion valuation in a funding round led by major global financial institutions.
Israeli serial entrepreneur Gil Mandelzis, a prominent figure in global finance and a former member of the Federal Reserve's Foreign Exchange Committee, has raised $220 million for Capitolis, a financial technology company often described as the 'Airbnb' for banks.
Funding Structure and Valuation
The funding round is divided into $120 million in equity and $100 million in debt financing, valuing the company at $1.9 billion. While this represents a high valuation, it does not mark a dramatic increase from its previous valuation of $1.6 billion in 2022. However, considering the broader fintech market correction, where average company valuations plummeted by approximately 60%, Capitolis successfully preserved and even enhanced its market worth.
"The round was led by some of our key clients, demonstrating robust confidence in our financial network and technological infrastructure," industry analysts noted.
Major Backers and Global Reach
The equity round was led by Citigroup, an existing investor, with participation from new strategic investors including Japan's Nomura, Bank of America, and Tradeweb Markets. Existing backers such as JPMorgan Chase, Barclays, BNP Paribas, and UBS also participated. The $100 million debt financing was secured through venture debt providers First-Citizens Bank (formerly SVB), Hercules Capital, and Pinegrove.
Capitolis operates as a major player in financial technology, enabling banks and investment houses to optimize capital sharing, reduce regulatory burdens stemming from post-2008 banking rules, and mitigate risk. The platform serves major global financial institutions, including the world's 30 largest banks, major U.S. regional banks, top pension funds, and leading hedge funds.
