The transformation of capital markets technology has been underway for over a decade, but adoption among incumbents has been slow. A new wave of entrants has been gaining traction with investors and set a record in 2016 with 216 deals worth approximately $1.89B. Armed with private funding, this set of companies is leveraging technology with the aim of automating, digitizing, and creating access to global capital markets.
Using CB Insights data, we identified over 145 companies in the capital markets tech space providing software and/or services for investment banks, hedge funds, investment managers, and so forth. We organized the companies into 3 main categories based on the traditional area of the business model they are attacking (front-office, middle-office, or back-office). We then categorized them across 15 different subcategories based on the software and services they offer to address pain points for financial services professionals.
We included companies in our map based on recency of funding, quality of investors, and Mosaic score — CB Insights’ proprietary algorithm that uses financial and non-financial signals to predict private company health.
We define capital markets tech broadly to include software and technology companies that are augmenting or replacing established business processes for financial institutions, including securities issuance, trading, clearance & settlement, and companies creating alternative solutions leveraging newer technology including AI, machine learning, and blockchain.
This category excludes payments, lending, and credit monitoring.
Please click on the map to enlarge. The map is not meant to be exhaustive of companies in the space and more companies can be found in the Collection link below
This category covers the front-office or customer-facing areas of the business including sales, trading, and research. This includes marketplaces and platforms that create access to primary and secondary markets, alternative exchanges to buy and sell assets, and general software that supports the sales and trading desk.
- Exchange / Trading Platform: These companies offer alternative exchanges or trading platforms for institutional investors for asset classes including stocks, bonds, ETFs, foreign exchange (forex), derivatives, and more. This includes IEX, an equity trading platform owned and operated independently of a major exchange and Trumid, an electronic bond trading platform.
- Portfolio Management: This is a broad subcategory of software that supports traders and investment advisors with tools that automate, digitize, and centralize portfolio and investment management workflows. This includes Opera Solutions, a company that provides investment recommendations while leveraging machine learning to conduct on-going portfolio performance updates and surveillance and Archer, a cloud-based investment management platform for institutional, retail, and private wealth managers, is also part of this subcategory.
- Hedge Fund Tech: These companies are leveraging technology to build alternative platforms for hedge fund and high-frequency trading. This subcategory includes Clearpool Group, a developer of electronic trading software that supports hedge funds.
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Capital Markets Tech
This category covers the middle-office, or support function, and includes investment risk, research, and analytics platforms.
- Alternative Data: Companies in this space provide investors with alternative access to data and non-traditional data sets that aim to complement or replace legacy data providers. This includes startups that are leveraging sentiment analysis like iSentium and companies that provide customer behavioral data such as Earnix.
- Business Intelligence: This subcategory includes companies that provide investors and advisors with tools to make strategic investment decisions. Companies include Addepar, which provides software to unify investment management and aggregates clients’ investment portfolios. It also includes MX, a centralized application that draws and cleanses disparate data sets from across platforms.
- Market Data Platforms: Companies in this subcategory collect unstructured data sets and provide investors with a platform to access market data, analytics, and conduct research. This includes AlphaSense, a platform that collects exchange rates, inflation data, and more. It also includes Xignite, a cloud-based marketplace for financial market data APIs.
This category covers the back-office or administrative functions and includes clearance & settlement, risk & compliance, and information technology broadly. Startups in this space help firms with post-trade clearance & settlement, regulatory compliance and risk mitigation, and general operations.
- AML / KYC: This includes companies that address anti-money laundering (AML) requirements, which prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities. Know Your Customer (KYC) tools help verify the identity of clients or personnel and are relied on by firms to conduct continuous monitoring and due diligence. Companies in this subcategory include Digital Reasoning Systems and Fenergo.
- Cap table management: This subcategory of companies is replacing a core administrative function of the back office — recordkeeping. This includes startups like eShares, which is creating and managing digital stock certificates, a historically manual process.
- Chatbots / Virtual assistants: Companies in this subcategory are leveraging AI to expedite or replace customer help desks, which includes the use of chat bots and personal assistant applications. Personetics Technologies, a personal assistant that uses predictive interaction to help financial services firms personalize the customer experience, is a notable company in the space.
- Clearance & Settlement: These companies are leveraging technology to disrupt existing clearance firms and innovate on the established settlement process. This includes ClearBank, a digital-first clearing bank, and Finxact, an enterprise software provider that provides core infrastructure built on the cloud. This also includes companies developing computational computing technologies, which have known applications in financial services, but have not yet been widely adopted. D-Wave Systems, a quantum computing developer, is a company in this subcategory.
- Clearance & Settlement-Blockchain: These companies are providing clearance & settlement for digital currencies and/or leveraging blockchain technologies to enhance core clearance & settlement including Digital Asset Holdings.
- Communication tools: This set of companies helps financial firms communicate securely both internally and externally with other firms. Notable startups include Symphony Communication Services Holdings and Cloud9 Technologies.
- Financial Services Software: This is a broad subcategory of companies that provide software for financial services firms to enhance existing products or introduce new ones. Startups include Plaid Technologies, a software intermediary that helps banks adopt a mobile strategy as well as InvestCloud, a cloud application developer that builds and deploys applications for asset managers, fund of funds, and investment advisors.
- Monitoring: This subcategory includes companies providing software that monitors employees, analyzes customer interactions, and/or identifies actionable anomalies for financial institutions. Droit Fintech, an over-the-counter (OTC) derivative trading platform that facilitates compliance with applicable global regulations and Bigstream Solutions, a data analytics platform that leverages machine learning to analyze user behaviors to proactively identify misconduct, are two companies in the space.
- Risk & Compliance: These companies are providing software that identifies and mitigates broader risk management and helps firms meet compliance requirements. This includes Riskalyze, software that aids advisors in measuring client risk tolerance thresholds and nCino, a bank operating software that provides a suite of portfolio risk management services.
See the full list of startups below:
|Capital Markets Tech Market Map|
|Artivest Holdings||Exchange / Trading Platform||500 Startups, Deep Fork Capital, FinTech Collective, Red Swan Ventures, RRE Ventures|
|AX Trading Group||Exchange / Trading Platform||Undisclosed Investors|
|Global Liquid Markets||Exchange / Trading Platform||Otter Capital, Sutter Hill Ventures|
|Halo Investing||Exchange / Trading Platform||Undisclosed Investors|
|IEX Group||Exchange / Trading Platform||Bain Capital Ventures, Franklin Templeton Investments, MassMutual Ventures, Spark Capital, Sapphire Ventures|
|Kantox||Exchange / Trading Platform||Cabiedes & Partners, Carlos Blanco, Francois Derbaix, Fxstreet, IDInvest Partners, Juan Margenat, Lanzame Capital|
|Mercatus||Exchange / Trading Platform||Augment Ventures, TPG Alternative & Renewable Technologies, Traverse Venture Partners, Trepp, Vision Ridge Partners|
|OpenDoor Trading||Exchange / Trading Platform||Hartfield, Titus & Donnelly, John Brynjolfsson|
|Orchard Platform||Exchange / Trading Platform||Spark Capital, Thrive Capital, Canaan Partners, Conversion Capital, Nyca Partners, QED Investors, Thomvest Ventures, Victory Park Capital|
|Spark Systems||Exchange / Trading Platform||Undisclosed Investors|
|TradAir||Exchange / Trading Platform||Carmel Ventures, Genesis Partners, Long Ridge Equity Partners|
|Trumid||Exchange / Trading Platform||CreditEase, SenaHill Partners, Shumway Capital, Soros Fund Management, Thiel Capital|
|Alphaclone||Hedge Fund Technology||Operative Capital|
|Potamus Trading||Hedge Fund Technology||Undisclosed Investors|
|Clearpool Group||Hedge Fund Technology||Edison Partners|
|Omega Point||Hedge Fund Technology||Liberty City Ventures|
|55 Capital||Portfolio Management||Calibrate Partners, Point72 Ventures, Tectonic Ventures|
|Additiv||Portfolio Management||BZ Bank Aktiengesellschaft|
|Archer||Portfolio Management||NewSpring Holdings|
|Bridge Financial Technology||Portfolio Management||SixThirty|
|CAIS||Portfolio Management||Square Peg Capital|
|Confluent||Portfolio Management||Benchmark, Data Collective, Index Ventures, LinkedIn, Sequoia Capital|
|Enfusion||Portfolio Management||FTV Capital|
|InvestEdge||Portfolio Management||Innovation Works, Vistara Capital Partners|
|Jacobi||Portfolio Management||Undisclosed Investors|
|METIS||Portfolio Management||Undisclosed Investors|
|Nirvana Financial Solutions||Portfolio Management||Mosaix Ventures|
|Opera Solutions||Portfolio Management||Accel-KKR, Enlightenment Capital, Invus Group, JGE Capital Management, Silver Lake Partners, Tola Capital, Wipro|
|Quovo||Portfolio Management||Continuity Capital, F-Prime Capital, FinTech Collective, Long Light Capital|
|Wealth Access||Portfolio Management||Cultivation Capital, SixThirty|
|Zichan360||Portfolio Management||SIG Asia Investments, Source Code Capital|
|7Park Data||Alternative Data||Mueller Ventures, NYU Future Labs|
|Accern||Alternative Data||26 Ventures, Affinity Investment Group, Belmont Capital, Gurtin Ventures, Rostra Capital|
|Airex||Alternative Data||SenaHill Partners|
|Alpaca||Alternative Data||Archetype Ventures, Bip Systems, D4V, Mitsubishi UFJ Capital, Monex Ventures, NEC Capital Solutions, SMBC Venture Capital|
|BISON||Alternative Data||Accomplice, GrandBanks Capital and Hamilton Lane Advisors|
|Dataminr||Alternative Data||Goldman Sachs, Credit Suisse NEXT Investors, Fidelity Investments, Glynn Capital Management, Institutional Venture Partners, Venrock, Wellington Management, WorldQuant Ventures, Deep Fork Capital, GSV Capital|
|Eagle Alpha||Alternative Data||Enterprise Ireland, Quay Investments, Roberto Hoornweg, Rosland Kilduff|
|Earnest Research||Alternative Data||ff Venture Capital, Greycroft Partners, Osage Venture Partners, Rincon Venture Partners|
|Earnix||Alternative Data||Formula Ventures, Israel Growth Partners, Jerusalem Venture Partners, Plenus Venture Lending, Vintage Investment Partners|
|Estimize||Alternative Data||Agilic Capital, Contour Venture Partners, Frank Sica, Longworth Venture Partners, and WorldQuant Ventures|
|InvestiQuant||Alternative Data||Undisclosed Investors|
|iSentium||Alternative Data||Angel Investors|
|Predata||Alternative Data||Chicago Ventures, Conversion Capital, Edison Partners|
|Quandl||Alternative Data||August Capital, Nexus Venture Partners|
|Selerity||Alternative Data||Citi Growth Ventures & Innovation Group, and Angel Investors|
|SmartKarma||Alternative Data||Jungle Ventures and Wavemaker Partners|
|StockTwits||Alternative Data||Foundry Group, Social Leverage, True Ventures, Betaworks|
|Street Contxt||Alternative Data||Formation 8, iNovia Capital, Joe Lonsdale, Palm Drive Capital, Point72 Ventures, Portag3 Ventures, Social Leverage|
|Thinknum||Alternative Data||500 Startups, 645 Ventures, Green Visor Capital, Pear, Signature Capital|
|Second Measure||Alternative Data||Bessemer Venture Partners, FundersClub, Norwest Venture Partners, Shasta Ventures|
|TrackInsight||Alternative Data||Aviva France Impact Investing, NewAlpha|
|Yipitdata||Alternative Data||Gotham Ventures, Highland Capital Partners, IA Ventures, RRE Ventures|
|Addepar||Business Intelligence||8VC, Anduin Ventures, Blumberg Capital, ff Venture Capital, Sway Ventures, Valor Equity Partners|
|Alight||Business Intelligence||Undisclosed Investors|
|Canalyst||Business Intelligence||Vanedge Capital|
|ChartIQ||Business Intelligence||FinTech Innovation Lab, Illuminate Financial Management, Social Leverage, Tribeca Angels, ValueStream|
|Dingfudata||Business Intelligence||Lingfeng Capital|
|EidoSearch||Business Intelligence||FinTech Innovation Lab|
|FI Navigator||Business Intelligence||Undisclosed Investors|
|Lucena Research||Business Intelligence||Flashpoint|
|MX||Business Intelligence||Commerce Ventures, DG Incubation, Fraser Bullock, Greg Warnock, Josh James, Nobutaka Mutaguchi, North Hill Ventures, Peak Ventures|
|Q4||Business Intelligence||Accomplice, Emerillon Capital, HarbourVest Partners, Information Venture Partners, Kensington Capital Partners, OpenText Enterprise Apps Fund, Plaza Ventures, Silicon Valley Bank|
|Random Forest Capital||Business Intelligence||Undisclosed Investors|
|RavenPack||Business Intelligence||Draper Esprit|
|Visible Alpha||Business Intelligence||Bank of America Merril Lynch, Citigroup, Jefferies & Company, Morgan Stanley, UBS|
|AlphaSense||Market Data Platform||First Fellow Partners, Quantum Strategic Partners, Soros Fund Management, Tom Glocer, Triangle Peak Partners, Tribeca Venture Partners, Vendep Startup Fund|
|AltX||Market Data Platform||Cowen Group, Addepar, Wells Fargo & Company|
|Kensho Technologies||Market Data Platform||Accel Partners, New Enterprise Associates, Work-Bench, General Catalyst, Bank of America Merril Lynch, Breyer Capital, Citigroup, F-Prime Capital, Goldman Sachs, Google Ventures, J.P. Morgan Chase & Co., Morgan Stanley, NBCUniversal, Promus Ventures, S&P Global, Wells Fargo & Company|
|Powerlytics||Market Data Platform||CME Ventures, Delaware Crossing Investment Group|
|Xignite||Market Data Platform||Altos Ventures, Startup Capital Ventures, StarVest Partners|
|Zirra||Market Data Platform||AOL Ventures and Angel Investors|
|Cognito||AML/KYC||Battery Ventures, Digital Currency Group, Khosla Ventures, Lightspeed Venture Partners, New Atlantic Ventures|
|Contego Fraud Solutions||AML/KYC||FinTech Innovation Lab and Angel Investors|
|Digital Reasoning Systems||AML/KYC||Credit Suisse NEXT Investors, FinTech Innovation Lab, Goldman Sachs, Health Evolution Partners, Health Insight Capital, In-Q-Tel, Lemhi Ventures, NASDAQ, Nashville Capital Network, Silver Lake Partners|
|Encompass||AML/KYC||Adcock Private Equity, Scottish Investment Bank|
|Enigma Technologies||AML/KYC||New Enterprise Associates, American Express Ventures, Comcast Ventures, Crosslink Capital, Two Sigma Ventures|
|Fenergo||AML/KYC||Insight Venture Partners, Investec Ventures, Aquiline Capital Partners|
|Fortress Risk Management||AML/KYC||Axiom Venture Partners, Sorenson Capital, Advantage Capital Partners, Black Dragon Capital, State of Connecticut|
|Onfido||AML/KYC||Salesforce Ventures, Spencer Hyman, Talis Capital, Wellington Partners, IDInvest Partners|
|Quantexa||AML/KYC||Albion Ventures and HSBC Venture Capital|
|Trunomi||AML/KYC||Fenway Summer Ventures, Fintonia Group, Persistent Venture Fund, Plug and Play Accelerator, Saturn Partners, SenaHill Partners, WorldQuant Ventures|
|Verafin||AML/KYC||Information Venture Partners, Spectrum Equity Investors|
|Capshare||Cap Table Management||Draper Associates, Jeremy Andrus, Jeron Paul, Kickstart Seed Fund, Otter Rock Capital, Standish Management|
|eShares||Cap Table Management||Industry Ventures, Spark Capital, Subtraction Capital, Union Square Ventures|
|Global Shares||Cap Table Management||Angel Investors|
|Active.ai||Chat Bot / Virtual Assistant||IDG Ventures India, Kalaari Capital, Kstart, Microsoft Accelerator|
|Avaamo||Chat Bot / Virtual Assistant||Eleven Two Capital, OVO Fund, Rembrandt Venture Partners, Streamlined Ventures, WI Harper Group|
|Kasisto||Chat Bot / Virtual Assistant||AlphaPrime Ventures, Commerce Ventures, Cristobal Conde, DBS Bank.MasterCard Worldwide, Propel Venture Partners, Two Sigma Ventures|
|Personetics Technologies||Chat Bot / Virtual Assistant||Carmel Ventures, Lightspeed Venture Partners, Santander InnoVentures, Sequoia Capital Israel|
|Broadway Technology||Clearance & Settlement||Long Ridge Equity Partners|
|Celerix Technologies||Clearance & Settlement||Bitkemy Ventures|
|ClearBank||Clearance & Settlement||PPF Group and Angel Investors|
|Delta Data Software||Clearance & Settlement||Accel-KKR|
|D-Wave Systems||Clearance & Settlement||BDC Venture Capital, Draper Fisher Jurvetson, Harris & Harris Group and Vanedge Capital, Fidelity Investments, Goldman Sachs, GrowthWorks, In-Q-Tel|
|Finxact||Clearance & Settlement||Live Oak Ventures|
|PeerNova||Clearance & Settlement||Blockchain Capital, Mosaik Partners, Zhejiang Zhongnan Holdings Group|
|Axoni||Clearance & Settlement – Blockchain||Andreessen Horowitz, Citigroup, Data Collective, Digital Currency Group, Euclid Opportunities, F-Prime Capital, FinTech Collective, Goldman Sachs, J.P. Morgan Chase & Co., NEX Group, Thomson Reuters, Wells Fargo & Company|
|Cambridge Blockchain||Clearance & Settlement – Blockchain||BBVA Open Talent, Digital Currency Group, FinTech Innovation Lab, Partech Ventures, Santander InnoVentures, PSP Investments|
|Digital Asset Holdings||Clearance & Settlement – Blockchain||ABN AMRO Bank, Accenture, Australian Securities Exchange, BNP Paribas Private Equity, Broadridge Financial Solutions, Citigroup, CME Group, Deutsche Boerse, Goldman Sachs, IBM, J.P. Morgan Chase & Co., NEX Group, PNC Financial Services Group, Santander InnoVentures and The Depository Trust & Clearing Corporation|
|Juzhen Financials||Clearance & Settlement – Blockchain||StatPro|
|Paxos||Clearance & Settlement – Blockchain||RRE Ventures, Canaan Partners, Digital Currency Group, Blockchain Capital, Liberty City Ventures|
|Ripple Labs||Clearance & Settlement – Blockchain||Andreessen Horowitz, Lightspeed Venture Partners, RRE Ventures, Google Ventures, IDG Capital, AME Cloud Ventures, Blockchain Capital, CME Ventures, Venture51|
|SolidX Partners||Clearance & Settlement – Blockchain||Jim Pallotta, Liberty City Ventures, Red Sea Ventures, Red Swan Ventures, Stanley Shopkorn|
|Cloud9 Technologies||Communication Software||Barclays Bank, J.P. Morgan Chase & Co., NEX Group, Point72 Ventures|
|MindLink||Communication Software||Undisclosed Investors|
|Symphony Communication Services Holdings||Communication Software||Bank of America Merril Lynch, BlackRock, BNP Paribas, BNY Mellon, Citadel Group, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Google, J.P. Morgan Chase & Co., Jefferies & Company, Lakestar, Maverick Capital, Merus Capital, Morgan Stanley, Natixis, Nomura Holdings, Societe Generale Group , UBS, Wells Fargo & Company|
|DealCloud||Financial Services Software||Cultivation Capital, Falfurrias Capital Partners, Hamilton Lane Advisors, Holekamp Ventures, Holton Capital|
|InvestCloud||Financial Services Software||Altos Ventures, FTV Capital, J.P. Morgan Chase & Co., Polaris Capital Management|
|Meniga||Financial Services Software||Crealogix, Frumtak Ventures, Industrifonden, Kjolfesta, Velocity Capital Private Equity|
|OpenFin||Financial Services Software||Bain Capital Ventures, DRW Venture Partners, Euclid Opportunities, J.P. Morgan Chase & Co., Nyca Partners, Pivot Investment Partners|
|Plaid Technologies||Financial Services Software||New Enterprise Associates, Spark Capital, Goldman Sachs, Google Ventures, Homebrew, American Express Ventures, Citi Ventures|
|Starburst Labs||Financial Services Software||Bel45 Capital Partners|
|Tradier||Financial Services Software||F-Prime Capital|
|UiPath||Financial Services Software||Accel Partners, Credo Ventures, Earlybird Venture Capital|
|Ascent Technologies||Monitoring||Undisclosed Investors|
|Bigstream Solutions||Monitoring||Cota Capital, Oriza Ventures, Streamlined Ventures|
|Chainalysis||Monitoring||Converge Venture Partners, Digital Currency Group, FundersClub, Point Nine Capital, Techstars Ventures|
|Coinfirm||Monitoring||Luma Investment, SEI Codify, Startup Collider by PwC|
|Compliance Science||Monitoring||Edison Partners|
|Droit Fintech||Monitoring||DRW Trading Group, Goldman Sachs, Illuminate Financial Management, Pivot Investment Partners, Wells Fargo & Company|
|Elliptic||Monitoring||Digital Currency Group, KRW Schindler Private Ventures, Octopus Ventures, Paladin Capital Group, Santander InnoVentures|
|Neurensic||Monitoring||Plug and Play Accelerator|
|OpenGamma||Monitoring||Accel Partners, Cristobal Conde, Euclid Opportunities, FirstMark Capital, Illuminate Financial Management, Japan Exchange Group, NEX Group|
|Qumram||Monitoring||Alma Mundi Ventures, Zirkonia|
|Solovis||Monitoring||Cultivation Capital, Edison Partners, Jeremie Bacon, MissionOG, Northwestern University, OCA Ventures, Timberline Venture Partners|
|AQMetrics||Risk & Compliance||Bluff Point Associates, Enterprise Ireland, Frontline Ventures|
|Argos Risk||Risk & Compliance||Undisclosed Investors|
|Ayasdi||Risk & Compliance||Floodgate, Institutional Venture Partners, Khosla Ventures, Kleiner Perkins Caufield & Byers, Apogee Venture Group, Centerview Capital, Citi Ventures, GE Ventures|
|Capital Confirmation||Risk & Compliance||Great Hill Partners|
|Certent||Risk & Compliance||Bridge Capital Holdings, K1 Capital|
|Corlytics||Risk & Compliance||Infinity Capital, Kernel Capital|
|Credit Benchmark||Risk & Compliance||Balderton Capital, Index Ventures|
|CreditPoint Software||Risk & Compliance||i2E|
|FINCAD||Risk & Compliance||Wellington Financial|
|Finomial||Risk & Compliance||Bridgescale Partners|
|Governance.io||Risk & Compliance||Banque Internationale a Luxembourg, European Investment Bank|
|INTIX||Risk & Compliance||Michel Akkermans|
|Kyriba||Risk & Compliance||Upfront Ventures, BRED Banque Populaire, Mitsubishi UFJ Capital, American Express, HSBC Venture Capital|
|Limina||Risk & Compliance||Mats Berglund, Pontus Braunerhjelm|
|LMRKTS||Risk & Compliance||FinTech Innovation Lab, Motive Partners|
|Merlon Intelligence||Risk & Compliance||Data Collective, Fenway Summer Ventures, Nyca Partners, Promus Ventures, Temerity Capital, Work-Bench|
|nCino||Risk & Compliance||Insight Venture Partners, Salesforce Ventures, Wellington Management, and Angel Investors|
|NetGuardians||Risk & Compliance||Freemont Management, Swisscom Ventures|
|Plia Systems||Risk & Compliance||Undisclosed Investors|
|Regnosys||Risk & Compliance||Undisclosed Investors|
|Riskalyze||Risk & Compliance||FTV Capital|
|Rsam||Risk & Compliance||JMI Equity|
|Token||Risk & Compliance||Digital Currency Group, EQT Ventures, Octopus Ventures, OP Financial Group|
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