fundcraft, a provider of digital infrastructure for asset management, has raised €5 million Series A. 

Fund managers increasingly outsource fund administration to specialist asset servicing companies. Fund administration represents a $50 billion annual market in the alternative asset management market. 

But despite its size, fund administration continues to operate in a highly inefficient manner, with heavy reliance on people-based operations, emails, spreadsheets and pdfs. 

fundcraft centralises and automates processes, data, and stakeholder interaction to lower costs and deliver better customer outcomes. Its open platform allows all parties in the fund administration value chain – lawyers, bankers, auditors, accountants, depositaries – to collaborate using one platform. 

By bringing together fund accounting, transfer agency, compliance, corporate secretary, portfolio management, and reporting into a single system, it consolidates workflows, processes, and delivers a single source of truth.

In turn, this leads to much lower fund administration costs, increased agility since many of the processes, such as capital calls, are fully automated, as well as lower risks.

Founded in 2021, fundcraft has more than 22 asset management clients, including Moonfare, Stableton and Tenity, managing more than 135 funds on their behalf, representing more than EUR6bn in commitment.

Victor Martin, co-founder and CTO, said:

“The Asset Management industry’s technology stack is antiquated, spreadsheet-driven and inefficient. 

We look forward to continuing to invest into our custom-built platform and working with best-in-class tech providers where relevant. 

Our services will disrupt and disintermediate the incumbents in the industry, but it’s our tech that supercharges our digitisation engine.”

Aperture Capital led the funding, with participation from SIX Fintech Ventures, the CVC arm of SIX Group, and early supporters. 

Ben Robinson, CEO of Aperture Group, commented:

“We believe fundcraft has the right model to transform asset servicing. We have seen for ourselves the inefficiency in this industry, and we’re convinced something radically different is needed. fundcraft’s model captures both supply-side economies of scale, by digitising fund administration end-to-end, and also demand-side economies of scale by orchestrating the fund administration value chain.”

fundcraft will use the funding round to expand its product and market reach into new markets, including Spain and Germany, in collaboration with a strong network of partners.

In addition, the company intends to address additional asset classes in addition to Venture Capital, Private Equity, and Fund of Funds, which are its focus today. 

Lead image: Victor Martin, co-founder and CTO, fundcraft. Photo: uncredited.