Israeli startup Sharegain raises a $64M Series B led by WestCap for its securities lending service that helps financial institutions lend stocks, ETFs, and more
Meir Orbach / CTech :
Context & Ripple Effects
Sharegain's $64M Series B extends an arc of Israeli fintechs selling software into the plumbing of institutional finance. The closest comparable is Capitolis, which built a collaboration platform for banks to source capital and had already pulled in a $40M Series B back in 2019 on its way to much larger rounds.
The buyer side matters too: when FundGuard raised its $40M round from Citi and State Street, it showed the custodians and banks that own securities-lending desks are willing to fund the vendors automating their own operations — the same dynamic WestCap is betting on with Sharegain.
First-order effects
- Sharegain gets growth capital from lead investor WestCap to scale its service that lets financial institutions lend out stocks, ETFs, and other holdings they would otherwise leave idle.
Second-order effects
- Rival platforms in the same workflow — most directly Capitolis, which helps the same institutions optimize capital — now compete with a better-funded neighbor for bank mandates and integration budgets.
Third-order effects
- If the pattern holds, securities lending shifts from a relationship-driven desk business inside banks toward software-mediated marketplaces, with the banks themselves becoming strategic investors in the tools that disintermediate their own margins.
The trend: Israeli fintech is productizing capital-markets operations that banks historically ran in-house, with those same banks funding the shift as strategic backers.