Linklaters announces strategic investment in, and collaboration with FinTech company Nivaura
Linklaters today announces an investment in, and collaboration with, Nivaura, a regulated FinTech company focused on automating the issuance and administration processes for financial instruments.
Founded three years ago, Nivaura’s focus is on the deployment of digital investment banking platforms for banks, exchanges and other financial institutions. These platforms connect and automate fragmented and manual processes involved in the issuance and administration of instruments such as debt, equity and structured notes. This has the potential to significantly reduce time to market and costs.
This strategic seed investment funding round sees Nivaura raise $20m from a number of partners including Linklaters. The other investors include The London Stock Exchange Group, Santander, InnoVentures. Aegon, Allen & Overy and Orrick.
The investment will allow Nivaura to expand its leadership, business development and technical teams in order to accelerate growth. In particular, it will ramp up expertise across machine learning and natural language processing, in line with the increasingly complex automation needs of Nivaura’s clients. The company also plans to enter new jurisdictions and to cover new asset classes.
Linklaters’ investment is a part of its strategy of embracing new ideas, technology and tools. As well as providing Nivaura with some of the investment necessary for the next stage of its development, it places Linklaters at the centre of new and emerging technologies that have the potential to fundamentally disrupt the way in which capital markets currently operate with knock-on effects for our clients.
The investment serves to highlight Linklaters’ ongoing position at the cutting edge of developments in finance and technology, which is further illustrated by the work the firm is doing with the International Swaps and Derivatives Association (ISDA). Alongside ISDA, Linklaters has developed and launched ISDA Create – IM, a new online solution that automates the process of producing and agreeing initial margin (IM) documentation and facilitates the creation of valuable structured data, which can subsequently be used for commercial, risk management and resource management purposes.
Richard Levy, partner at Linklaters, commented:
“I am delighted that we are able to help Nivaura in the next stage of its development. The team here is excited about the joint collaboration that Nivaura and Linklaters have planned. Financial market infrastructures and the technologies behind them are evolving and Nivaura are at the centre of these developments. Our investment in, and collaboration with, Nivaura is another opportunity for us to help shape the markets that we and our clients work in.”
Richard Hay, UK Head of Fintech at Linklaters, commented:
“It is key for current fintech outfits to be able to point to clear benefits of deployment. Levels of hype are receding, and potential users are starting to show signs of “innovation fatigue” and healthy scepticism. Successful offerings provide customers an immediate benefit, such as cost-reduction, but also a way of future-proofing business lines. For that reason, we see Nivaura’s platform as having a potentially significant effect on the broader capital markets ecosystem. That includes law firms, as their platform places legal documentation at the centre of the drive towards automation.”