Illuminate Financial Management (IFM), a fintech focused venture capital firm founded by former ICAP executive Mark Beeston, announced that they have invested in CloudMargin. A cloud-based collateral and margin management technology provider, CoudMargin markets its solution to buy-side and non-bank institutions such as corporates, hedge funds, insurers, pension funds and asset managers.
The deal marks the first investment made by IFM since it launched in 2014 and the first venture funding raised by CloudMargin. The investment comes as CloudMargin and Mark Beeston’s network converged recently. ArcadiaSoft, of which Beeston was a former board member, and CloudMargin announced connectivity between their platforms in a recent partnership.
Among its features, CloudMargin provides firms the ability to track their real-time risk and collateral levels on their open positions. The product offering fits an area of expertise for IFM’s Beeston as he was involved in post-trade risk management while at ICAP.
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Beeston stated about the deal, “CloudMargin fits perfectly into our investment thesis of identifying and accelerating the growth of young companies that will lead the next stage of technology innovation within capital markets. It is unique in that it offers a low cost solution for a range of industry participants as well as improving efficiency for the major sell-side players who interact with those same counterparties. This technology is going to be transformational in the evolution of collateral processing and we look forward to supporting CloudMargin’s growth over the coming years.”
Andy Davies, CEO and co-Founder of CloudMargin, added, “We are delighted that Illuminate has chosen to invest in CloudMargin. This is a great validation of both our technology and the solution we have created. Illuminate has already played a role in developing better access, connections and relationships with our target market, and we look forward to partnering with them to accelerate CloudMargin’s growth and client adoption.
Our understanding of the markets and ongoing changes around collateral processing. Crucially, the team at Illuminate provides not only capital, but has a proven track record of creating, funding and scaling fintech market infrastructure that will be highly beneficial to CloudMargin’s growth journey.”