Passthrough has successfully raised $15 million over two funding rounds, aiming to simplify the process of investing in private markets. The platform offers a TurboTax-style workflow for investors, streamlining the fund closing process and making it easier and faster to invest in venture capital funds.
Keep reading to explore the intricacies of Passthrough's fundraising journey and the investors backing this innovative platform.
What Is Passthrough?
Passthrough, founded by Tim Flannery, is based in New York City and aims to simplify private market investments. The company offers a TurboTax-style workflow for fund closing, making the process efficient and user-friendly.
With a team of 11-50 employees, Passthrough focuses on automating subscription documents, KYC, and AML compliance. Their innovative "investor passport" allows for seamless reuse of investor information for future investments.
Passthrough's mission is to make investing in private markets as straightforward as public stock investments, providing a streamlined experience for both investors and fund managers.
How Much Funding Has Passthrough Raised?
- Seed Round
- Amount Raised: $5 million
- Date: February 15, 2022
- Lead Investors: Positive Sum
- Motivation Behind the Round: To provide fund workflow automation, starting with fund closing software, and to create a more efficient and structured process for investors and fund managers.
- Series A
- Amount Raised: $10 million
- Date: February 1, 2023
- Lead Investors: Positive Sum
- Valuation at Round: $50 million
- Motivation Behind the Round: To fund product research and development, marketing, and scaling core offerings, with plans to expand into enterprise and double the headcount.
Passthrough has raised a total of $15 million with a current valuation of $50 million.
Key Investors
- Positive Sum
- Details: Positive Sum is a venture capital firm that led Passthrough's Series A funding round. They focus on investing in early-stage technology companies with high growth potential.
- Investment Focus Areas: Technology, FinTech, SaaS
- Notable Investments: Carta, Plaid, Robinhood
- Motley Fool Ventures
- Details: Motley Fool Ventures is the venture capital arm of The Motley Fool, a financial and investment advisory company. They participated in Passthrough's Series A round.
- Investment Focus Areas: FinTech, Consumer Tech, HealthTech
- Notable Investments: Truebill, Grove Collaborative, Root Insurance
- Broadhaven Ventures
- Details: Broadhaven Ventures is a venture capital firm specializing in financial technology investments. They also participated in Passthrough's Series A round.
- Investment Focus Areas: FinTech, InsurTech, RegTech
- Notable Investments: Betterment, Carta, Plaid
- Company Ventures
- Details: Company Ventures is a New York-based venture capital firm that invests in early-stage startups. They were part of Passthrough's Series A funding.
- Investment Focus Areas: SaaS, HealthTech, Consumer Tech
- Notable Investments: Bowery Farming, Ro, The Wing
- Great Oaks VC
- Details: Great Oaks VC is a seed-stage investment firm that participated in Passthrough's Series A round. They focus on high-growth potential startups.
- Investment Focus Areas: FinTech, Consumer Tech, HealthTech
- Notable Investments: Acorns, Allbirds, Away
What's Next for Passthrough?
Passthrough is poised to capitalize on the growing demand for streamlined investor onboarding in private markets. With billions of dollars in investments processed and a robust new API offering on the horizon, the company is well-positioned to expand into enterprise markets. This opportunity could significantly increase their customer base and revenue streams.
Future fundraising seems likely as Passthrough continues to innovate and scale. The development of features like the investor passport could attract additional investment, potentially leading to further rounds of funding. However, the company will need to navigate challenges such as competition from established firms and ensuring compliance with regulatory requirements.
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