RegTech scale-up SteelEye raises $21M in round led by Ten Coves Capital to accelerate growth and meet demand for holistic compliance solutions
The $21M (£18M) Series B funding takes SteelEye’s total capital raised to $43M (£36.3M)
Funding will support SteelEye’s accelerated growth as it expands internationally – with an emphasis on North America
Increasing regulatory and cost pressures are driving a switch to cloud-based compliance solutions as more financial firms look to replace siloed systems and legacy technology
SteelEye’s holistic platform is unique in bringing together communications and trade data under a single lens, providing solutions for archiving and record keeping, eDiscovery, trade reconstruction, communications and trade surveillance, and reporting
8 September 2022, London/New York: SteelEye, the compliance technology and data analytics firm, has announced the completion of a $21M Series B fundraise to accelerate its global expansion – with an emphasis on North America.
The funding round – led by Ten Coves Capital alongside existing investors Fidelity International Strategic Ventures, Illuminate Financial, Beacon Equity Partners, and a large family office – takes SteelEye’s total capital raised to date to $43M.
Today, SteelEye counts some of the largest financial services firms in the world as clients including Fidelity International and Schroders. The Series B fundraise comes on the back of record growth in 2021 when SteelEye’s revenues grew by 88 percent and will support the firm as it targets further rapid, yet scalable expansion.
Heightened regulatory pressure, a changing operational environment post-COVID, and growing data volumes have increased the complexity and cost of compliance for financial firms – making it harder for them to accurately comply with rules designed to protect the integrity of the financial markets.
At the same time, regulatory scrutiny is growing, with regulators imposing combined fines of over $1BN on global tier one banks in the last nine months. This has increased the demand for regulatory technology (RegTech) solutions that enable robust yet efficient regulatory compliance.
SteelEye – headquartered in London with offices in New York, Bengaluru (India), and Braga (Portugal) – provides a SaaS-based RegTech platform that allows banks, brokers, asset managers, and other regulated financial firms to simplify their compliance processes across various EU, UK, and US market regulations.
The firm’s mission is to make it easy for financial firms to accurately comply with regulatory rules, while also allowing firms to glean insights from their data.
Commenting on the funding, Matt Smith, CEO of SteelEye, said:
“Facing regulatory clampdowns, huge data volumes, and inflation impacts on budgets, financial firms need ways to reduce costs through efficiencies and automation. This is what we deliver through our distinctive, data-centric compliance platform. We are delighted to partner with the team at Ten Coves Capital, who have a long history of enabling technology businesses to scale and deliver real value to the financial services industry.”
Launched in 2017, SteelEye is unique in being the only solution that can natively bring together communications with trade and order data under a single lens. This unified holistic approach provides data-driven and automation-led solutions for archiving, regulatory reporting, communications and trade surveillance, best execution monitoring, and data analytics.
Brian Lynch, President of SteelEye Americas, added:
“US demand for RegTech solutions that enable financial firms to navigate the expanding regulatory landscape is at an all-time high and projected to grow. Recent fines levied on tier one banks for e-communications breaches further highlight the increased regulatory pressures driving demand.”
Steve Piaker, a Managing Partner at Ten Coves Capital, said:
"SteelEye has a highly differentiated approach and has demonstrated strong momentum and growth. Financial services firms are drowning in data and SteelEye delivers a modern unified data capture and analytics solution at scale tuned to more accurately and efficiently separate out the noise from actionable investigations. We are excited to partner with the company as it accelerates its expansion in the North American market and beyond."
Royal Park Partners acted as the exclusive financial and strategic advisor to SteelEye and its shareholders throughout the transaction.
SteelEye simplifies compliance for financial firms and saves them time and money. SteelEye’s holistic platform allows firms to comply with global regulations for record keeping and archiving, trade and communications surveillance, and reporting.
With SteelEye, firms can easily lock their data in a WORM-compliant vault, identify and stop early warning signs of harmful conduct, and demonstrate that they have watertight policies, procedures, and controls.
By connecting large volumes of data from multiple sources, SteelEye enables firms to meet regulatory obligations quickly, efficiently, and accurately. Firms also gain full visibility and control of their trading and compliance operations, with cutting-edge analytics that offer timely insights on risks and opportunities. Visit steel-eye.com to learn more.
About Ten Coves Capital Ten Coves Capital invests in innovative, high growth FinTech companies where its capital, network and decades of experience can help accelerate growth and value creation. Investing across payments, RegTech, banking & lending, asset management, capital markets, and insurance & benefits, among other segments, the Ten Coves team has helped scale over 40 companies that are solving industry pain points, enabling workflows, and providing critical infrastructure to the largest financial institutions down to SMBs. For more information, visit tencoves.com.