I’ve always been a little wondering why AngelList doesn’t work in Europe. Especially considering that a few years ago there was a lack of effective funding options for underprivileged European startups. But the reason is very simple, if you look at the situation. First, the US tech industry has grown exponentially over the last decade. When your market is rising, you don’t need to divert your resources to others, right? Second, building such a platform beyond Europe‘s myriad regulatory barriers is horribly complex, and even the most brave will falter. That’s why the market for such funding platforms has been in some vacant lot for so long. until now.
Vauban, a new London-based startup, will provide venture capital fund managers with tools for financing and investing. The company has recently completed a £ 4.7m “Postseed / Pre-Series A” funding round.
According to Vauban, it plans to strengthen its technology and regulatory infrastructure and open a new office in Luxemburg in addition to its London headquarters. Now it can be deployed in the entire European ecosystem.
The investment round was co-leaded by Pentech and Outward, with 7percent Ventures and MJ Hudson also participating. Others include Nested CEO Matt Robinson, Grabayo founder Will Neale, Comply Advantage funder and CEO Charles Delingpole, and Augmentum Fintech partner Perry. A number of angel investors also attended, including Blacher and Al giles of legal service provider Axiom.
Vauban allows VCs and angel investors to raise funds, establish angel organizations, raise funds and manage investment activities. Users can establish and deploy funds and SPVs (Special Purpose Vehicles) under review authority around the world in “a fraction of the usual time and cost”, organizational structure, legal documents, etc. Investor training, banking transactions, reporting, etc. are covered.
Vauban plans to accept “at least one new customer every day,” and said current VC users include Anthemis, Passion Capital, and Octobus Ventures. Currently, more than 5,000 LPs (limited liability partners) are using the company’s platform.
Funder and co-CEO Rémy Astié said: “Our goal is to smoothly connect those who have the money with those who need the money to solve humanity’s biggest problems, so from rebuilding the digital track infrastructure. We decided to get started because it’s imperative to provide a great user experience for everyone in the industry, including general partners, limited partners, and founders. “
Vauban appeared just as a huge investment activity was taking place in the European tech industry. In the first half of 2021, Europe as a whole raised € 41.8 billion ($ 46.86 billion / ¥ 5.39 trillion), a significant increase from € 32.6 billion in 2020.
Venture capital manages multiple funds, recently using special purpose vehicles (SPVs) to participate in special transactions, make secondary investments, and run parallel to EIS (corporate investment schemes) and major core funds. Now that we are doing various activities such as setting up a “side car” fund, all processes are becoming complicated, so “platformization” in this field is progressing. You can no longer do it with spreadsheets or similar simple tools.
In addition, with more and more specialization and organization among European angel investors to strengthen transaction formation and transaction flow, it is no wonder that a dedicated platform is welcomed.
Founder and co-CEO Ulric Musset said, “The biggest contributor to the formation of new startups was the advent of Amazon Web Services (AWS) in the early 2000s. We believe that Vauban will have the same impact on the startup ecosystem. “
Outward VC investor Andi Kazeroonian commented: “Despite the rapid growth of alternative investments in recent years, the infrastructure on which the industry depends has not evolved. Simply creating and monitoring investment tools is a redundant, tedious and expensive process. Is the same as being scattered across multiple service providers. Vauban’s integrated platform has renewed this with a thorough focus on product and user experience, resulting in extraordinary organic growth. It’s no surprise that we have become an outstanding leader in this field in Europe. “
Pentech partner Craig Anderson added: “We want to invest in a category-leading company with great growth ambitions. Vauban is where users invest in funds and SPVs. We are confident that we are creating a new infrastructure for the alternative asset market that can be set up and deployed in just a few hours. “
Asti, founder and co-CEO of Vauban, said: “What makes us different from AngelList is that we are building with international and global in mind. The aim is to create a global platform, which is an LPS (investment) anywhere in the world. It means that we can raise funds from (Business Limited Partnership) and invest in companies anywhere in the world. And we think this is our core strength, but we all have international LPs. It is designed with this in mind, so you can raise funds in multiple currencies.
Image Credit: Vauban Team
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(Sentence: Mike Butcher, Translation: Nob Takahashi / facebook)