MDOTM raises USD $27 million to expand AI platform

MDOTM has raised USD $27 million in a growth equity round led by Expedition Growth Capital, bringing its total funding to USD $36.5 million.

The London-founded financial technology group will use the new capital to expand internationally and hire across AI research, engineering, product development, sales and client solutions.

MDOTM sells an AI investment platform called Sphere to asset and wealth managers, banks and insurers. The system supports more than USD $100 billion in assets across more than 60 financial institutions in the US, UK and Europe, including Morgan Stanley, Amundi and Zurich Bank.

The investment also brings board changes. Steve Twomey, Partner at Expedition Growth Capital, and James Hays, Chairman of IFC Advisors and former Chief Executive Officer of Wells Fargo Advisors, have joined the board.

They join Chief Executive Officer Tommaso Migliore, Chief Scientist Federico Mazzorin and Chief Operating Officer Federico Invernizzi.

Growth plans

The deal comes as investment firms face fee pressure while clients demand more tailored portfolios and reporting. At the same time, managers are handling a broader range of market data, investment opportunities, and portfolio constraints across many accounts.

MDOTM says this has increased demand for software that helps firms manage portfolio construction, rebalancing and client communications more efficiently. Its platform is designed to combine market and macroeconomic analysis with users' own investment views, then turn those inputs into portfolio tools and reporting.

Sphere includes portfolio construction and rebalancing functions, as well as generative AI tools for portfolio commentary and client reporting. Financial institutions are using the platform in production to manage portfolio workflows at scale, according to MDOTM.

Founded in London in 2015, the business also has offices in New York and Milan. It says its team includes more than 60 data scientists, engineers and finance specialists, along with an academic research network of more than 20 professors and PhD researchers focused on machine learning, portfolio management, behavioural finance and AI ethics.

"Asset and Wealth Managers are no longer asking whether to use AI in investment decisions, but how to deploy it at scale across thousands of portfolios while maintaining control. That is exactly what Sphere was built to enable, which is why leading financial institutions are already running the platform in production. This investment will help us expand our team and meet accelerating demand in the US and European market," said Tommaso Migliore, Chief Executive Officer of MDOTM.

Investor view

Expedition Growth Capital, which focuses on software and AI investments, operates from London and Boston. It was drawn to MDOTM's role in parts of the investment workflow that still rely heavily on manual processes.

Many financial institutions have already invested in client-facing and back-office software, while portfolio alignment, rebalancing and commentary are still often handled through spreadsheets and fragmented internal processes, the firm said. That gap has become more visible as firms seek to manage larger numbers of portfolios without increasing staff at the same pace.

"Financial institutions have spent the last decade buying back-office and front-end software, but the work in the middle still happens in spreadsheets: rebalancing, keeping portfolios aligned with house views and generating client commentary. MDOTM has built the AI infrastructure that finally scales that work, with the explainability and governance institutional buyers demand," Steve Twomey, Partner at Expedition Growth Capital, said.

The funding gives MDOTM additional capital as competition intensifies among technology suppliers seeking a place in the investment process. While AI adoption in finance has often centred on research tools, client servicing and internal automation, firms such as MDOTM are targeting the portfolio management layer, where investment teams must balance standardisation, oversight and customisation across thousands of accounts.

For asset and wealth managers, that challenge has grown as personalised mandates become more common and firms try to keep portfolios aligned with central investment views while responding to tax, risk and client-specific constraints. MDOTM says Sphere is intended to support that process from investment insight generation through to portfolio changes and reporting.

With the latest round complete, the company enters its next phase with fresh capital, two new board members and a customer base that, it says, already spans more than 60 financial institutions and over USD $100 billion in assets.