Total amount raised
$15 Millions
Latest funding date
2/1/2023
Location
Passthrough has successfully raised $10 million in a Series A funding round, attracting investment from notable backers including Adam Demuyakor and Positive Sum. The platform specializes in automating fund workflows, particularly focusing on subscription documents and compliance processes.
Keep reading to explore the intricacies of Passthrough's fundraising journey and the investors backing this innovative platform.
What Is Passthrough?
Passthrough, founded in 2020, is based in New York, New York. The company specializes in automating fund workflows, focusing on subscription documents, KYC, and 31 CFR compliance.
Founded by Alexandre Laplante, Ben Doran, and Tim Flannery, Passthrough aims to streamline the subscription process for private funds, making it easy to distribute and execute subscription agreements electronically.
With a team of 11-50 employees, Passthrough continues to innovate in the financial technology space, providing seamless digital onboarding experiences for investors.
How Much Funding Has Passthrough Raised?
- Seed Round
- Amount Raised: $5M
- Date: February 2022
- Lead Investors: Positive Sum
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To address inefficiencies in fund workflows and develop a system to normalize answers in subscription documents.
- Series A
- Amount Raised: $10M
- Date: February 2023
- Lead Investors: Positive Sum
- Valuation at Round: $50M
- Motivation Behind the Round: To accelerate growth, enhance product experience, and support the launch of new products like AML and KYC compliance offerings.
Total amount raised: $15M. Current valuation: $50M.
Key Investors
- Positive Sum
- Details: Positive Sum led the Series A funding round for Passthrough. Patrick O’Shaughnessy, Partner & CEO, is a key figure in the firm.
- Investment Focus Areas: Operational efficiencies, fintech, workflow automation.
- Notable Investments: Not publicly disclosed.
- Motley Fool Ventures
- Details: Motley Fool Ventures participated in the Series A funding round. The firm is known for investing in early-stage companies with strong growth potential.
- Investment Focus Areas: Technology, fintech, early-stage startups.
- Notable Investments: Not publicly disclosed.
- Broadhaven Ventures
- Details: Broadhaven Ventures also participated in the Series A funding round. The firm focuses on financial technology and related sectors.
- Investment Focus Areas: Financial technology, fintech, related sectors.
- Notable Investments: Not publicly disclosed.
- Company Ventures
- Details: Company Ventures is a returning investor, having participated in both the seed and Series A rounds. The firm invests in early-stage companies across various sectors.
- Investment Focus Areas: Technology, innovation, early-stage startups.
- Notable Investments: Not publicly disclosed.
- Great Oaks VC
- Details: Great Oaks VC is another returning investor, participating in both the seed and Series A rounds. The firm focuses on early-stage investments in technology and consumer sectors.
- Investment Focus Areas: Technology, consumer, fintech.
- Notable Investments: Not publicly disclosed.
What's Next for Passthrough?
Passthrough stands at the cusp of significant growth opportunities, driven by the increasing demand for automated fund workflows and compliance solutions. With the recent $10 million Series A funding, the company is poised to enhance its product offerings, including a new API integration for enterprises and fintechs. This expansion could position Passthrough as the default platform for fund closing, catering to a broad spectrum of fund managers and large asset managers.
Future fundraising seems likely as Passthrough scales its operations and continues to innovate. The company may attract further investments to support its ambitious growth plans and product development. However, challenges such as regulatory compliance, competition from other fintech firms, and maintaining data security will require careful navigation. As Passthrough evolves, it will need to stay ahead of industry trends and continuously improve its platform to meet the growing needs of its clients.
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