Canoe Intelligence announced the completion of its Series C financing round of $36 million, led by Growth Equity at Goldman Sachs Alternatives with participation from existing investors F-Prime Capital and Eight Roads. This latest round represents a more than 3x increase in company valuation since its Series B financing in 2023.
Canoe taps artificial intelligence (AI) and machine learning (ML) to automatically collect and categorize alternative investment documents from investor portals and email inboxes. The technology then extracts, validates, and delivers clean data to downstream systems, eliminating the need for manual data entry. Annually, Canoe processes more than 25 million documents and clients see results such as a 20-fold increase in the number of funds processed per employee, compared to their previous manual processes.
The funding is earmarked to continue its investment in building proprietary AI and machine learning technology for back-to-front office capabilities.
Jason Eiswerth, CEO of Canoe Intelligence, said in a statement: “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.”
Alternative investments now represent $22 trillion in assets under management, or 15% of global assets under management, highlighting the critical importance of advanced technology for managing investment documents and data. 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.
Jade Mandel, managing director in Growth Equity at Goldman Sachs Alternatives, said in a statement: “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.”
Griffith Norville, head of Technology Solutions at Hamilton Lane, said in a statement: “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.”