Serial entrepreneur Gil Mandelzis, one of the most prominent Israelis in the global finance sector, and who in the past served on the Federal Reserve Bank of New York Foreign Exchange Committee, has raised $220 million for technology company Capitolis, which describes itself as a kind of Airbnb for banks, enabling them to share risk to their capital and to meet regulations imposed on them after the financial crisis of 2008. The company maintains a development center in Tel Aviv.
The raise, $120 million of which is equity and $100 million is debt, values Capitolis, which serves the largest banks and insurance companies in the US, at $1.9 billion. This is high, but not a great improvement on previous raises. The company was valued at $1.6 billion in a financing round in 2022, but considering the drastic fall in valuations of fintech companies, which on average have been cut by 60%, the current valuation is impressive.
The financing round was led by some of the company’s customers: Citi, an existing investor, together with new strategic investors such as Nomura, Bank of America, and Tradeweb Markets. Other existing investors such as JP Morgan, Barclays, BNP Paribas, J.P. Morgan, State Street, and UBS. The $100 million debt financing is from First Citizens Innovation Banking (formerly Silicon Valley Bank), Hercules Capital, and Pinegrove Venture Partners.
Capitolis has become the largest player in the technological niche that enables banks and investment houses to share capital in order to reduce the interest they pay on surplus capital, or in other words to mitigate the risk undertaken by each of them, and to locate opportunities for sharing capital with other banks. Capitolis charges commissions on deals carried out through its platform. In the past year the company’s revenue has grown by 65%, and in the next year it plans to reach operating breakeven and then profitability. According to estimates that have not been confirmed by the company, its revenue for 2026 will total $125-130 million.
The financing round follows four acquisition by Capitolis, the latest of them last week when it bought securities lending company eSecLending for $200 million.
Capitolis employs 200 people. Its headcount has not grown in line with its revenue, apparently because of extensive adoption of AI. The acquisition of eSecLending brings with it 120 employees in the US. Altogether, following the acquisition, Capitolis will employ 320 people, 60 of them at its Tel Aviv development center.
Published by Globes, Israel business news - en.globes.co.il - on October 6, 2026.
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