FundGuard, a cloud-based investment funds operating system, has bagged $4m in funding, alongside the launch of its services.
The equity round was led by venture capital firms Blumberg Capital and LionBird.
This burst of funding will be used to speed up the development of its platform, and contingency NAV product. Proceeds will also be used to increase the operational efficiencies created through AI and cloud-based technology.
FundGuard helps asset managers, custodian banks and fund administrators manage investments across mutual funds, ETFs, separately managed accounts, pension funds and insurance. Through AI and machine learning technology, the company is able to identify unstructured financial and operational anomalies or potential fraud.
The company also provides users with real-time support and insights and recommendations.
Its contingency and oversight NAV product delivers daily-resetting, fully automated operating system at an independent location. Through this, asset managers can fulfil their fiduciary reposnsibility for business continuity and protecting funds data and valuation from failures and cyberattacks.
FundGuard CEO and co-founder Lior Yogev said, “With continued pressure on management fees driven by the proliferation of ETFs, robo-advisors, ‘zero fee’ offerings, and frequently changing regulations, the industry is clearly now in need of an operating system that’s highly accurate across all asset classes and efficient to operate.
“Our SaaS platform is built to meet the needs of today’s investment industry, designed to support sophisticated trading environments and new technologies such as distributed ledgers. Users will find a modern UX, APIs, plus workflow and collaboration tools that will add tremendous value to their companies and keep them ahead of the competition.”
Earlier in the month, Blumberg Capital participated in the $15m Series B round of Arcadia Data. The company provides native visual analytics software that runs within modern data platforms for the scale, flexibility, performance and security users need to glean business insights and design data-centric applications in the era of big data and IoT.
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