The banking sector has long been marked by complexity, siloed operations, and inefficiencies, particularly for smaller and mid-sized institutions. The high-profile failures of banks like Silicon Valley Bank and First Republic Bank in 2023 highlighted the vulnerabilities in the financial ecosystem and underscored the urgent need for greater resilience, asset diversification, and interbank collaboration.
In response to these challenges, Capstack Technologies, founded in March 2024 by Tzvika Perelmuter Co-Founder & CTO and Michal Cieplinski, Co-Founder & CEO is pioneering a transformative approach to banking. The company is developing a platform designed to foster collaboration, transparency, and efficiency within the banking industry. By empowering smaller banks with the tools, resources, and networks traditionally available only to larger institutions, Capstack aims to revolutionize the way banks manage risk, diversify assets, and trade loans, ushering in a new era of cooperation that could redefine the financial landscape.
Redefining the Future of Banking
Capstack Technologies is more than just a fintech startup; it is a catalyst for change in the banking industry. By bridging gaps between financial institutions, Capstack fosters collaboration and innovation in a space historically defined by silos and inefficiencies. Through automation, powerful analytics, and new avenues for collaboration, Capstack empowers banks to operate more efficiently and seize new opportunities.
Capstack’s mission is to redefine the way banks interact, trade, and grow in a rapidly evolving financial landscape. With the support of its investors, customers, and strategic partners, Capstack is well-positioned to become a cornerstone of modern banking, driving change and innovation in the industry.
A Leader’s Compass
Tzvika’s leadership philosophy centers around five core principles:
- Leading by Example: Tzvika believes in the power of action over words. By embodying the values and work ethic he expects from his team, he cultivates a culture of accountability and commitment.
- Focusing on Business Impact and Value: Every decision and initiative is guided by its value to the organization and its customers. Tzvika encourages his team to prioritize work that aligns with the company’s mission and delivers measurable results.
- Setting Up Clear Processes That Can Scale: To support growth, Tzvika emphasizes the importance of robust, scalable processes that provide structure and efficiency without stifling creativity. These processes ensure that the organization remains agile and effective as it expands.
- Thinking Long-Term Success: While short-term wins are valuable, Tzvika prioritizes sustainable strategies that ensure the company’s long-term success. This perspective guides decisions that balance immediate needs with future opportunities.
- Avoiding Micromanagement: Tzvika trusts his team to take ownership of their responsibilities and empowers them to make decisions. By focusing on outcomes rather than micromanaging every detail, he fosters an environment where individuals can thrive and innovate.
These principles are reflected throughout the organization by fostering a culture of continuous improvement, maintaining transparency, and empowering teams to make decisions aligned with the company’s core values and objectives.
From Crisis to Innovation
Building and scaling Capstack has presented significant challenges, primarily stemming from the inherent resistance of banks to adopt new technologies. As heavily regulated institutions, banks are often bound by legacy systems, rigid processes, and a culture of caution. Overcoming this resistance required Capstack to prioritize reliability, security, and compliance. The company has worked closely with banks to address their concerns, integrate seamlessly with existing infrastructure, and ensure data privacy and regulatory adherence.
Despite these hurdles, Capstack has made significant progress. The company’s success in onboarding new banks, facilitating transactions, and receiving positive customer feedback reinforces its belief in the platform’s value. By empowering financial institutions to collaborate and innovate, Capstack is driving meaningful change in the industry and building a more resilient banking ecosystem.
Empowering the Next Generation
Tzvika, a seasoned leader with a background in elite units like 8200 and a successful fintech company like Fundbox understands that building a successful startup requires more than just technical expertise. At Capstack Technologies, he sought out exceptional individuals who not only possess outstanding skills but also embody a strong team spirit, unwavering commitment, and alignment with the company’s mission and values.
Mentorship has been a cornerstone of Tzvika’s leadership philosophy. Drawing on his experience as a commander in 8200 and team leader at Fundbox, he actively invests in the personal and professional growth of his team members. By sharing the rationale behind business decisions and fostering a culture of transparency, he empowers his team to make informed choices and deliver exceptional results.
This approach has cultivated an environment where talent flourishes, collaboration thrives, and individuals grow alongside the company. Capstack’s team is poised to tackle challenges and drive innovation, ensuring the company’s continued success.
Capstack’s Innovative Solutions
Capstack’s technology has significantly enhanced the customer experience by introducing seamless and efficient processes.
- Data-Driven Decision Support: By leveraging advanced data analytics and AI, Capstack’s platform empowers customers to make informed and precise decisions, improving outcomes and mitigating risks.
- Core System Integrations: Capstack enables automatic data input and output by integrating directly with banking core systems. This eliminates manual data handling, ensuring accuracy and reducing operational overhead.
- Automation and Efficiency: Capstack’s solutions replace manual processes like Excel-based tracking, streamlining workflows and making operations faster, more accurate, and seamless.This holistic approach not only improves operational efficiency but also enables customers to focus on strategic priorities, ensuring their competitive edge.
A Powerful Partnership
Tzvika and Michal, the visionary founders of Capstack Technologies, embarked on their journey with a successful $6 million seed funding round, backed by prominent fintech-focused venture capital firms such as Fin Capital, Valor Equity Partners, Alloy Labs, Selah Ventures, Cowboy Ventures, Cambrian Ventures, Gaingels, Future Perfect Ventures, and Uncorrelated Ventures. This early-stage investment provided the necessary fuel to accelerate innovation and execution.
Recently, Capstack achieved another significant milestone by securing a strategic investment from Citi Ventures, the venture arm of Citi Bank. This strategic partnership not only validates the potential of Capstack’s platform but also provides access to Citi’s extensive industry expertise and global network. With Citi’s support, Capstack is poised to scale more effectively and solidify its position as a leading player in the fintech industry.
Data-Driven Decision Making
Capstack Technologies made a significant strategic move in mid-2024 by acquiring Edge Tradeworks. This acquisition integrated advanced data analytics capabilities into Capstack’s platform, empowering its customers with actionable, data-driven insights. By leveraging these enhanced tools, banks and financial institutions can make informed decisions regarding loan trading and portfolio diversification.
This strategic move underscores Capstack’s commitment to innovation and bold decision-making. By incorporating Edge Tradeworks’ expertise, Capstack is delivering unparalleled analytics and automation solutions that simplify complex processes, reduce inefficiencies, and empower financial institutions to operate with precision.
Go-to-Market Strategy
Capstack Technologies, despite its relative youth, has already gained significant momentum. Numerous banks have joined the platform, actively participating in transactions and leveraging its tools to streamline operations. Several successful deals have been completed, demonstrating the real-world impact and utility of Capstack’s offerings.
The company’s primary focus is now on scaling its marketplace to create a vibrant, balanced ecosystem of buyers and sellers. Building a robust customer base on both sides is crucial for ensuring natural transaction flow and fostering long-term sustainability. To achieve this, Capstack is deeply invested in refining and executing its go-to-market (GTM) strategies, aiming to onboard a diverse range of banks and financial institutions. By expanding adoption and increasing engagement, Capstack is poised for exponential growth.
Connecting the Dots
Capstack Technologies is revolutionizing the traditional way banks operate by breaking down the silos that have historically limited collaboration. Traditionally, banks have functioned as isolated entities, focusing primarily on internal operations. By fostering collaboration between banks, Capstack’s platform unlocks immense potential for growth and efficiency.
Key Benefits
- Enhanced Collaboration: Capstack enables banks to work together seamlessly, sharing opportunities and resources, and leveraging each other’s strengths.
- Expanded Opportunities: The platform allows banks to access new geographic markets and niche sectors, opening up new revenue streams and growth avenues.
- Diversified Portfolios: By facilitating the trading and participation of loans, Capstack empowers banks to diversify their portfolios, enhancing financial stability and resilience.
- Scalable Business Model: Capstack’s platform generates revenue through a “toll fee” on each transaction, creating a scalable and lucrative business model.
By connecting banks and fostering collaboration, Capstack is transforming the financial landscape and creating a more dynamic and resilient banking ecosystem.
