Canoe Intelligence Raises $36 Million Series C Funding Led by Goldman Sachs to Further Market Expansion

Rhea-AI Summary

Canoe Intelligence announced raising $36 million in a Series C funding round led by Goldman Sachs, with participation from F-Prime Capital and Eight Roads. This funding increases Canoe's valuation by over three times since its Series B in 2023, marking a significant milestone for the company's growth.

The capital will be used to advance Canoe's AI-driven financial technology platform for alternative investors, enhancing its back-to-front office capabilities. The company has achieved 100% year-over-year growth in clients and revenue, and serves over 1,000 LPs with its automated data management solutions.

Goldman Sachs highlighted Canoe's potential in streamlining alternative investment data, noting the firm's extensive client base, which includes Blackstone and Hamilton Lane. Canoe's technology processes over 25 million documents annually, significantly boosting operational efficiency.

Positive

• Series C funding of $36 million led by Goldman Sachs.
• Valuation increased by more than 3x since Series B in 2023.
• 100% year-over-year growth in clients and revenue.
• Canoe serves over 1,000 LPs with automated data management solutions.
• Processes over 25 million documents annually.

Negative

• None.

Insights

Financial Analyst

Canoe Intelligence's $36 million Series C funding led by Goldman Sachs is a noteworthy financial milestone. This infusion of capital is particularly significant given the more than 3x increase in company valuation compared to their Series B round in 2023. Funding rounds are important indicators of a company's growth potential and market confidence. Here, Goldman Sachs's involvement suggests a strong vote of confidence in Canoe's business model and technological capabilities.

In terms of amount, $36 million is substantial. It will likely be allocated towards global growth and strategic initiatives, which could include expanding into new regions, acquiring complementary technologies or businesses and further developing their AI-driven platform. Given that alternative investments now account for $22 trillion in assets under management, the potential market for Canoe's solutions is vast.

For retail investors, the key takeaway is the company’s trajectory. Canoe’s 100% year-over-year growth in both clients and revenue is impressive. This suggests robustness and scalability in their business model, which are positive indicators for future performance. However, investors should also consider the associated risks, such as the competitive landscape and the execution of their ambitious expansion plans.

Tech Expert

The most compelling aspect of Canoe Intelligence's funding news is their commitment to enhancing their AI and machine learning capabilities. Their platform automates the collection, categorization, extraction and validation of alternative investment documents. This tech focus is important because manual data entry is time-consuming and error-prone. By leveraging AI, Canoe is dramatically improving data accuracy and operational efficiency.

For context, alternative investments often involve complex data from various sources. Canoe's technology processes over 25 million documents annually, which translates to a 20-fold increase in funds processed per employee. This substantial efficiency gain underscores the transformative potential of their platform.

From an investor’s perspective, the key insight is that Canoe is positioning itself as a leader in a niche yet rapidly growing market. The scalability of their technology and their extensive client base, including top-tier institutional investors, signal both reliability and market acceptance. Nevertheless, the success of these technological advancements depends on continuous innovation and addressing evolving client needs.

Market Research Analyst

The alternative investments space is expanding, currently representing 15% of global assets under management. Canoe Intelligence’s platform addresses a critical need for efficient data management in this sector. Their growth story is compelling; since their last funding round, they've seen a 100% increase in clients and revenue. This not only indicates strong market demand but also suggests that they are filling a significant gap in the industry.

More intriguingly, Canoe has managed to secure partnerships with major players like Blackstone and Hamilton Lane. These alliances are vital as they provide Canoe with both credibility and a broader client base. Partnerships often lead to additional business opportunities and can be a catalyst for further growth.

For retail investors, the broader market context is essential. The substantial increase in alternative investments underscores the importance of efficient data management solutions. Canoe's alignment with this trend positions them well. Additionally, with Goldman Sachs leading this funding round, it likely means Canoe will benefit from strategic guidance and additional resources, further enhancing their market positioning. However, investors should remain mindful of the competition and Canoe's ability to maintain their growth trajectory.

Funds will fuel the company’s strategic initiatives, global growth, and advancement of its AI-driven financial technology platform for alternative investors

NEW YORK--(BUSINESS WIRE)-- Canoe Intelligence (“Canoe”), the financial technology company powering smarter alts management, today announced the completion of its Series C financing round of $36 million, led by Growth Equity at Goldman Sachs Alternatives (“Goldman Sachs”) with participation from existing investors F-Prime Capital and Eight Roads. This latest round marks a significant milestone for Canoe, representing a more than 3x increase in company valuation since its Series B financing in 2023. With the additional capital, Canoe will continue its investment in building proprietary AI and machine learning technology to enhance its comprehensive back-to-front office capabilities.

“We eagerly anticipate driving the next phase of Canoe’s evolution in partnership with Goldman Sachs,” said Jason Eiswerth, CEO of Canoe Intelligence. “The success of this funding round is a testament to our leading market position, as well as our future potential. With the additional capital, we will continue to advance the alts industry by building innovative AI and machine learning technology, delivering comprehensive back-to-front office solutions, maintaining our commitment to data integrity and, most importantly, creating value for our clients.”

Alternative investments now represent $22 trillion in assets under management, or 15% of global assets under management, highlighting the critical importance of advanced technology for managing investment documents and data. Through its automated infrastructure, Canoe drives improvements in data accuracy and access, team efficiency, and client satisfaction for investors. Canoe’s platform streamlines data management for a diverse client base of 325 institutional investors, capital allocators, wealth managers, family offices and asset servicing firms, including Blackstone and Hamilton Lane (Nasdaq: HLNE).

Jade Mandel, Managing Director in Growth Equity at Goldman Sachs Alternatives, said, “Canoe creates meaningful value for its clients, streamlining and synthesizing data for greater efficiency and accuracy. As inflows to alternative investments continue to grow, Canoe is uniquely positioned to capitalize on the trend. We see significant potential in Canoe and are excited to invest in their future. We are glad to support their mission to streamline alternative investment data globally.”

Since the completion of Canoe’s Series B funding round in February 2023 led by F-Prime Capital and joined by Eight Roads, Canoe has achieved 100% year-over-year growth in both clients and revenue. Canoe’s extensive partnerships with four of the top five global asset servicing firms, seven of the top ten global investment consultants, six of top ten fund of funds, five of the top ten endowments, 12 of the top 25 largest independent wealth managers, and many of the world's largest single-family offices provide the firm with unique scale and market leadership. Canoe supports the alternative data management needs of over 1,000 LPs across more than 650,000 commitments and subscriptions to over 42,000 funds. This represents one of the most robust fund master databases in the world.

"With Canoe, we have found a leading technology partner that shares our vision for enhancing data transparency and seeking to achieve greater operational efficiencies across the private markets," said Griffith Norville, Head of Technology Solutions at Hamilton Lane. "Integrating Canoe into our firm’s ecosystem has transformed our data management processes by streamlining data entry workflows and eliminating redundancies in an effort to ensure the highest quality of data for our teams and clients. As both an investor and user of Canoe’s technology, we believe Canoe's dedication to developing proprietary AI and machine learning technology sets them apart in the industry, and we are excited to continue working together to further digitize the asset class."

Canoe leverages artificial intelligence and machine learning to automatically collect and categorize alternative investment documents from investor portals and email inboxes. The technology then extracts, validates, and delivers clean data to downstream systems, eliminating the need for manual data entry. Annually, Canoe processes more than 25M documents, showcasing scalability, breadth and depth. For clients, this results in a 20-fold increase in the number of funds processed per employee, compared to their previous manual processes, highlighting the impact of Canoe’s technology on operational efficiency and productivity.

About Canoe Intelligence

Canoe Intelligence (“Canoe”) is a financial technology company dedicated to advancing alternative investment intelligence for institutional investors, capital allocators, wealth managers, and asset servicing firms. Canoe empowers clients with technology, data, and insights to manage alternative assets more efficiently, accurately, and confidently. With a commitment to innovation and excellence, Canoe is redefining the future of alternative investment data management.

About Growth Equity at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of March 31, 2024.

Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. Follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240709626710/en/

For Goldman Sachs Asset Management

Victoria Zarella, GS

victoria.zarella@gs.com

Patrick Lenihan, Gravity Strategic Partners

patrick@gravitystrat.com

For Canoe Intelligence

Betsy Miller Daitch, Canoe Intelligence

bdaitch@canoeintelligence.com

Source: Canoe Intelligence

FAQ

What recent funding did Canoe Intelligence secure?

Canoe Intelligence raised $36 million in a Series C funding round led by Goldman Sachs.

How has Canoe Intelligence's valuation changed since its Series B round?

Canoe Intelligence's valuation has increased by more than 3x since its Series B round in 2023.

How will Canoe Intelligence use the $36 million Series C funding?

The funding will be used to advance Canoe's AI-driven financial technology platform for alternative investors, focusing on enhancing its back-to-front office capabilities.

Which major firms are clients of Canoe Intelligence?

Canoe Intelligence's major clients include Blackstone and Hamilton Lane (Nasdaq: HLNE).

What growth has Canoe Intelligence achieved recently?

Canoe Intelligence has achieved 100% year-over-year growth in both clients and revenue.

How many documents does Canoe Intelligence process annually?

Canoe Intelligence processes over 25 million documents annually.