Bank-to-Bank marketplace Capstack Technologies secures strategic investment from Citi Ventures
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Capstack Technologies recently managed to secure a strategic investment from Citi Ventures. The size of the investment was not disclosed, but the move shows that Citi has developed great interest in the company’s innovative approach.
Capstack brought transparency and efficiency into the failing banking sector
Capstack Technologies is a bank-to-bank marketplace that was designed to mitigate asset risk. Last year, in 2023, the firm held a funding round that managed to attract over $6 million from reputable VCs.
The Miami-based firm started attracting attention during a very turbulent time for the US banking sector. Over the last several years, the sector was marked by multiple high-profile failures, such as Silicon Valley Bank, which caused a great deal of uncertainty and concern for the sector’s future.
The failure of major banks was caused by a variety of factors, including liquidity challenges, asset concentration risks, as well as growing concerns over commercial real estate investments. With these challenges and concerns dominating the sector, the Capstack marketplace emerged as a breath of fresh air.
It was designed to promote transparency, collaboration, efficiency, and to boost profitability while mitigating risk. This is possible thanks to asset diversification for the country’s 4123 community, as well as regional banks, which oversee over $3.4 trillion in assets, collectively.
A pivotal moment for Capstack Technologies
Commenting on Capstack Technologies’ business model, Citi Ventures’ director, Jeff Flynn, stated that it is quite innovative and could fundamentally change the way smaller banks manage risk and grow their businesses. In fact, he believes that Capstack Technologies could ultimately end up creating new opportunities even for established giants like Citi itself, allowing them to engage differently with this, rather sizable segment of the financial services sector.
Capstack also recently worked on strengthening itself, by way of forming an advisory board and improving its leadership team. Some additions to the board include Trey Maust, chairman of Lewis & Clark Bancorp, as well as Patrick Kennedy, executive chairman of TransPecos Banks, and Dub Sutherland of Kennedy Sutherland. There is also David McArdle, who became the head of banking relationships, and also the new head of customer and platform operations — Randy Riffle.
Capstack’s CEO, Michael Cieplinski, stated that these recent achievements — securing a Citi investment, forming a new advisory board, and adding experienced executives from community and regional banks — mark a pivotal moment for Capstack Technologies. “These milestones validate our vision and accelerate our mission to revolutionize banking technology for the community,” he added.
