London-based regtech SteelEye plans to use $10 million raised through its series A funding round to build on significant market momentum and grow as compliance requirements and costs for financial services firms continue to bite.
The fintech strategic investments team at Eight Roads, the proprietary investment firm backed by Fidelity, and existing investor Illuminate Financial participated in the funding round, which took the total amount raised by SteelEye to $20 million.
SteelEye was established in October 2017 to reduce the complexity and cost of compliance and to enable financial services firms to manage their regulatory obligations through a single platform.
The regtech already has more than 50 clients across seven countries. To date, SteelEye has launched solutions for record keeping, trade reconstruction, transaction reporting, trade and communications surveillance, best execution reporting, transaction cost analysis and advanced analytics for regulations including the EU Markets in Financial Instruments Directive (MiFID) II, European Market Infrastructure Regulation and Market Abuse Regulation, as well as the UK Senior Managers and Certification Regime and US Dodd-Frank Act.
Alokik Advani, managing director of fintech strategic investments at Eight Roads, said of his firm’s investment: “SteelEye’s innovative data and regtech platform is successfully helping financial firms manage their increasingly complex compliance obligations. SteelEye has achieved considerable momentum in the market, demonstrating significant demand for its services. We are delighted to partner with SteelEye to boost their growth and we look forward to reinforcing their efforts.”
Matt Smith, chief executive officer of SteelEye, added: “Data accuracy has been one of the biggest challenges facing firms’ following regulations such as MiFID II. By solving the data problem first, our clients not only save cost and free up time but gain unparalleled insight into their business and commercial operations. Eight Roads shares our ‘data first’ vision and will be instrumental in helping us grow our business.”
“We are very excited to welcome Eight Roads in as an investor in SteelEye, bringing with them significant experience and distribution potential for the SteelEye products,” continued Mark Beeston, managing partner and founder of Illuminate Financial Management.
“Since we invested in SteelEye’s late seed round, they have continued to fit perfectly in Illuminate’s enterprise fintech-focused portfolio, providing a centralised and infinitely scalable data solution for financial institutions. When a client’s data is all in one place, SteelEye’s ability to deploy new regtech or business intelligence modules, either homegrown or via partnerships, is very powerful.”