CloudMargin, creator of the world's first and only collateral and margin management solution native to the cloud, today announced that it has closed on its largest funding round to date, bringing in $15 million in a Series B capital raise. Primary investors were Deutsche Börse, one of the largest exchange organisations worldwide, along with Tier-1 global investment banks and current CloudMargin clients Deutsche Bank and Citi.
CloudMargin CEO Stuart Connolly said: "We're delighted to enjoy the confidence of these premier global institutions and to give them an important voice on our Board of Directors as we continue on our exciting growth trajectory. During this unprecedented period of global turmoil and market volatility, it speaks volumes for the CloudMargin business model, achievements and strategy that we were able to successfully close this meaningful investment round with such high calibre partners as Deutsche Bank, Deutsche Börse and Citi. For financial services institutions, the impact of COVID-19 has further reinforced our value proposition by highlighting many challenges the industry has faced for a prolonged period and acting as a catalyst to drive transformational change; firms are placing a strategic priority on adopting modern, Software-as-a-Service based cloud technologies that provide agility as well as operational and cost efficiencies."
Connolly said the funds will be used to further innovate the platform and technological capability to deliver an enhanced product and service for clients and partners. In addition, the firm intends to expand its sales and client service capabilities in the U.S. and Asia to meet greater demand.
Tilman Fechter, Head of Banking, Funding & Financing at Clearstream, part of Deutsche Börse Group, said: "CloudMargin is a perfect investment opportunity for Deutsche Börse and its post-trading services provider Clearstream. Its innovative and agile technology brings crucial momentum to all players in the collateral management industry, from the largest investment banks to small and medium-sized buy-side institutions. Joining forces between established trusted players and a flexible start-up like CloudMargin is essential to future-proof the business for all market participants."
Joseph Macdonald, Director, Fixed Income and Currencies Trading for Deutsche Bank, said: "CloudMargin is a key partner for Deutsche Bank's collateral management division, and we have been working closely together since we established our partnership in 2018. Our investment reflects our confidence in CloudMargin's world-class platform and its future within the industry."
"We appreciated CloudMargin's commitment to delivering a collateral and margin management solution in such an agile manner," said Sanjiv Sawhney, Head of Custody and Fund Services at Citi. "Having adopted the CloudMargin platform in 2018 to support the provision of efficient outsourcing services for our clients, we have been impressed by the technology and chose to invest in the company."
Jefferies LLC served as CloudMargin's financial advisor on the transaction. Since the company's inception in 2014, CloudMargin has raised $35 million through equity issuance, with investors including IHS Markit, Jefferies and Illuminate Financial.
About CloudMargin
Headquartered in London, CloudMargin created the world's first cloud-based collateral management workflow tool, which has earned 20 industry awards and honours since 2015 for innovation and best-in-class technology. The firm's Software-as-a-Service (SaaS) model is helping many of the leading sell-side and buy-side financial institutions globally – including brokerage firms, banks, asset management firms, pension funds and insurance companies – as well as outsourcers and other technology firms meet time-critical regulatory deadlines and reduce costs associated with collateral requirements that are growing dramatically. CloudMargin bypasses many of the shortfalls of legacy, on-premise software, enabling clients to experience rapid implementation and access to robust and secure collateral management workflow software. With more than 20 integration partnerships, CloudMargin was the first collateral management solution provider to be a member of the SWIFT network, facilitating straight-through processing through settlement. For more information, visit www.cloudmargin.com.
