FundGuard, a US startup that provides asset managers with a cloud-based and AI-powered account management platform, has raised $100m in funding. 

The startup was founded in 2018 and has raised $150m to build its AI-powered investment management platform.

FundGuard claims it has “transformed” account management by leveraging cloud and AI.

The startup said it envisions an industry-supported, single operating model in asset management hat “flows front to back across asset classes, regions, and functions – helping to facilitate safe and efficient asset growth for all investors.”

FundGuard said its AI-powered platform can be used to manage ETFs, hedge funds, insurance products, pension funds and mutual funds. 

The Series C funding round was led by the Key1 Capital fund and joined by Euclidean Capital. 

The funds raised will be put towards ongoing investment in product innovation and continued onboarding of existing and new customers, the startup said.

Amit Pilowsky, co-founder and managing partner of Israel-based Key1 Capital, said most asset managers were having to rely on “outdated” accounting software. 

“What happens is that there are many mistakes, the reporting is not always timely,” Pilowksy said. 

FundGuard has “solved an acute problem for an enormous industry. It’s not a nice-to-have,” he said.

FundGuard has offices in London, Toronto, Tel Aviv, New York and Boston.

AI has grown at a tremendously fast pace and has developed into a cornerstone of the industry.

The release of ChatGPT in 2022 has led to AI and GenAI being implemented into almost every industry, from healthcare and education to gaming and accounting.

Research and analyst company GlobalData estimates the total AI market will be worth $383.3bn by 2030, implying a 21% compound annual growth rate between 2022 and 2030.