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Fintech venture capital firm takes stake in collateral management company CloudMargin

llluminate Financial Management, the capital markets-focused financial technology venture capital firm, has invested in CloudMargin.

CloudMargin’s cloud-based solution, which launched in 2013, is a cross product cloud-based collateral and margin management technology solution that costs a fraction of competing products. It was developed to cater specifically to buy-side and non-bank institutions such as corporates, hedge funds, insurers, pension funds, asset managers and more. 

The move marks Illuminate’s first investment in a fintech firm since it was launched last year by industry veteran Mark Beeston, who previously managed ICAP’s post-trade risk and information division. Illuminate’s investment is the only institutional funding completed by CloudMargin as it eyes the next phase of its growth. 

Mark Beeston, Managing Partner and Founder of Illuminate Financial Management, says: “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, says: “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.”

Richard Berliand, Board Advisor to CloudMargin, says: “We chose Illuminate because of their unique 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.”

CloudMargin recently announced connectivity to AcadiaSoft, the collateral messaging platform, where Mark Beeston was a former member of the Board. 

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