In just six months, Allocate has onboarded more than 200 non-institutional investors, who have allocated over $125M into venture capital funds through the platform
Allocate continues to open the doors to family offices and wealth advisory clients looking to invest in venture capital
SAN FRANCISCO, May 4, 2022 /PRNewswire/ -- Allocate, a digital investment platform that provides investors a streamlined way to access top-tier venture funds and co-investments, announced a $15.3M Series A funding round. The latest round of funding was led by M13 with participation from Bedrock, SignalFire, and Intera Capital, and returning investors Tusk Venture Partners, Urban Innovation Fund, Fika Ventures, Anthemis, Basis Set Ventures, and Broadhaven Ventures.
Over the last two decades, the growing role of technology startups has made the venture capital asset class into a highly attractive asset class for investors. While demand for venture products has grown, the most attractive investment opportunities are still primarily reserved for large institutional investors. The majority of the estimated 8,000-11,000 global family offices and nearly 20 million accredited investors are often locked out of the most promising emerging and established strategies due to high minimums, and difficulty of diligence and discovery.
Launched in late 2021, Allocate is an end-to-end platform that provides qualified investors with a streamlined way to discover, diligence, and access top fund manager strategies. The platform is specifically designed for advisors to easily implement private technology-focused products without the friction associated with sourcing and accessing the most promising funds.
The company's platform works by automating product discovery, KYC and AML, subscription documents, capital calls, and investment management. As the platform aggregates investor capital into Allocate feeder vehicles, investors can invest in top opportunities at low minimums with the purchasing power of institutions, enabling them to build diversified and responsible portfolios. Allocate also enables fund managers to efficiently access non-institutional investors without the hassle of sourcing, managing, and administering these allocations.
"The private and public markets are quickly converging. However, the venture fund ecosystem remains an insular and inefficient industry as it relates to supply and demand. Efficient and healthy markets are inclusive, transparent, and intuitive. Our vision at Allocate is to usher in a new era of responsible private market technology investing" said Samir Kaji and Hana Yang, co-founders of Allocate.
Despite launching the platform only six months ago, Allocate has onboarded over 200 family offices and wealth advisory firms, who have allocated over $125M to products listed on the Allocate platform. The platform, which has over 600 investors on the waitlist, is now moving out of beta and is actively onboarding clients.
M13 co-founder Carter Reum said, "Venture is becoming more institutionalized and will quickly become an established asset class like private equity. Access and technology have not evolved with the industry, putting Allocate in the lead to solve growing pains for GPs while providing previously excluded investors with curation and access to VC returns. I have personally experienced both the supply and demand pain points that Allocate aims to solve, and I could not be more excited to back Samir, Hana, and the team on their mission to open access to the venture asset class."
The new round of funding will allow the Allocate team to hire new employees to vet the expanding waitlist of accredited individual investors, wealth managers, and family offices. The team at Allocate plans to launch new features in the platform that will allow co-investment, analytics, and educational webinars on investment opportunities. If you are interested in learning more, please reach out on our website: https://www.allocate.co/
Founded by Samir Kaji and Hana Yang in 2021, the founding team is uniquely positioned to unlock access to the new era of venture capital investing. The two co-founders have worked closely with over 1,000 venture fund managers in their careers. Before launching Allocate, the team previously had tenures at SVB Financial Group, SVB Capital, Hamilton Lane, AngelList, Bowdoin Endowment, Icapital, Fidelity, First Republic Bank, Kauffman Fellows, CircleUp, Gradifi, and Vistaprint.
CONTACT: Rachel Livingston, [email protected]