Canoe Intelligence, a financial technology company focused on smarter alts management, announced the completion of its Series C financing round of $36 million today – which was led by Growth Equity at Goldman Sachs Alternatives with participation from existing investors F-Prime Capital and Eight Roads.
This latest funding round marks a significant milestone for Canoe, representing a more than threefold increase in company valuation since its Series B financing last year. With the additional funding, Canoe will continue investing in building proprietary AI and machine learning technology to enhance its comprehensive back-to-front office capabilities.
Alternative investments now represent $22 trillion in assets under management (AUM), or 15% of global assets under management – which highlights the critical importance of advanced technology for managing investment documents and data. And 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.
Since completing the Series B funding round in February 2023 led by F-Prime Capital and joined by Eight Roads, Canoe achieved 100% year-over-year growth in clients and revenue. And Canoe supports the alternative data management needs of over 1,000 LPs across over 650,000 commitments and subscriptions to over 42,000 funds, representing one of the most robust fund master databases in the world.
Canoe utilizes AI/ML to automatically collect and categorize alternative investment documents from investor portals and email inboxes. Then the technology extracts, validates, and delivers clean data to downstream systems, eliminating the need for manual data entry. Canoe processes over 25 million documents, showcasing scalability and depth. For clients, this results in a 20-fold increase in the number of funds processed per employee compared to previous manual processes, highlighting the impact of Canoe’s technology on operational efficiency and productivity.
KEY QUOTES:
“We eagerly anticipate driving the next phase of Canoe’s evolution in partnership with Goldman Sachs. 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.”
- Jason Eiswerth, CEO of Canoe Intelligence
“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.”
- Jade Mandel, Managing Director in Growth Equity at Goldman Sachs Alternatives
“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. 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.”
- Griffith Norville, Head of Technology Solutions at Hamilton Lane
