MerQube raises USD 22 million with Series B Fundraising led by Intel Capital
Indexing technology company addresses growing global demand for rules-based investment solutions
July 13th, 2023 - MerQube, a pioneer in technology for next generation index-linked investing, announces USD 22 million raised in Series B funding. The investment round was led by Intel Capital with participation from new investor Allianz Life Ventures, and existing investors Citi, J.P. Morgan, Laurion Capital Management and UBS. In conjunction with the financing, David R. Mueller, Intel Capital Investment Director, will join MerQube’s board of directors.
The “index-linked investments” market, valued at USD 17 trillion today, is evolving rapidly with assets expected to reach USD 30 trillion by 2027.1 This growth continues to accelerate demand for customization, flexibility, scale and speed to market, driving the transformation of traditional passive investing and raising the need for state-of-the-art technology and computational capabilities. MerQube’s cloud native SaaS platform and API-first solutions are designed and built to address and unlock this unmet demand. Its data ingestion framework and building block approach creates the unique computational agility required to process extensive amounts of data from a vast array of sources, and deliver cost-effective, rapidly implemented solutions.
“We are thrilled to welcome Intel Capital and Allianz Life Ventures as investors”, said Vinit Srivastava, CEO at MerQube. “The support of a leading technology V.C. firm such as Intel Capital will be instrumental as we deliver on our vision to close the fintech gap in passive investing by providing the best technology available to enable innovative rules-based investment solutions. The participation of a powerhouse such as Allianz Life Ventures will provide strategic direction in the insurance market as we continue to expand to meet the needs of a diverse client base.”
“The surging market demand for sophisticated tailored indices can be effectively delivered by a cloud-based and API-centric architecture,” said Sunil Kurkure, Managing Director at Intel Capital. “We believe the next wave of innovation in rules-based investing will be driven by customization at scale to meet diverse investor requirements and drive cost efficiency. MerQube’s technology puts it in a unique position to deliver the solutions this trend will require. Intel Capital is delighted to collaborate with MerQube on this next phase of their journey.”
In May 2023, MerQube received FCA authorization under Benchmarks Regulation (BMR) and in September 2022, it confirmed its adherence to International Organization of Securities Commissions (IOSCO) principles for Financial Benchmarks. MerQube’s other recent accomplishments have included assuming calculation and administration services for the UBS CMCI index family, a family of 1,100+ of UBS’s most innovative commodity indices. MerQube is also the benchmark provider for most of the defined outcome ETFs issued in the USA.
MerQube plans to utilize the funds raised to further expand its engineering capabilities and platform infrastructure, scale its talent, and continue to expand into its key markets.
Wilson Sonsini Goodrich & Rosati acted as legal counsel to MerQube.
1Financial Times Passive Funds overtake active, ISS says, January 2023
Contact details
Barbara Mahe Alex Brown
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About MerQube
MerQube is an innovative technology provider offering design and calculation solutions for rules-based investment strategies and passive solutions. Launched in 2019 by a team of index industry veterans and technology experts, MerQube was created as a technology-driven answer to the most complex rules-based investment strategies. MerQube today calculates a wide variety of strategies, ranging from defined outcome to volatility and risk control, from end-of-day to real-time calculations. MerQube’s capabilities extend to any rebalancing schedule, including intraday, and incorporate sophisticated TWAP and VWAP algorithms.
For more information, please visit https://merqube.com/
Disclaimer
The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. MerQube and all other companies mentioned in this document are not responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.
