When it comes to fundraising and its associated challenges, much of the narrative focuses on how the low rates of activity from investors are impacting startup growth at various stages or within specific industries.
However, it’s important to also consider the challenges for private investment bodies such as venture capital offices or private equity firms. Very often these firms have the dual task of securing capital from external investors, usually in the form of limited partners, while also looking for the best investment opportunities that will deliver stable, secure returns.
In 2023, fund managers had to do this against a backdrop of geopolitical tensions, the threat of recession, and higher interest rates which continue to impact fundraising, deal competition, and exit timelines.
In addition, private funds in the US are preparing for a slew of Securities and Exchange Commission (SEC) private fund adviser reforms to go into effect this year or next. Meanwhile, the SEC is also placing closer scrutiny on ESG efforts, fee and expense allocations, and investor disclosures.
This means that managing back office tasks is likely to become trickier, while well-structured and managed records have never been more important.
Syndicately serves to provide greater speed and accessibility in capital raising by streamlining how investment vehicles are created and executed.
The company is trusted by a variety of professional investors including VCs, family offices, and angel investors thanks to its reliable, tailored deal management platform that helps firms navigate through the complexities of fundraising.
How Syndicately fuels private deals in new ways
Fundraising successfully goes far beyond just the ability to secure the confidence of investors to raise capital. The way that deals are structured, and foundational elements like equity management, are pivotal for success.
Decisions made in the back office about how deals are structured and recorded can help companies within investment portfolios grow more successfully and avoid legal issues. For instance, a capitalization table, or cap table, is essentially the ledger of a company’s ownership that details who owns what, and the conditions attached to them. As companies attract new investments and advisors, its complexity increases significantly meaning that relying on a simple spreadsheet won’t suffice for long. Here, Syndicately makes this task extremely straightforward to manage on its digital platform.
In addition, as the landscape of venture capital and private equity evolves, Syndicately aims to grow alongside the industry with specific solutions.
As the company name suggests, syndication is an increasingly popular option for private investment. A syndicate is a temporary alliance of businesses that joins together to manage a large transaction, which would be difficult, or impossible, to effect individually.
For example, in an initial public offering (IPO), a number of investment banks and broker-dealers form a syndicate to sell new offerings of stock or debt securities to investors. The underwriting group shares the risk and aids in the successful distribution of the new securities issue.
In addition, the company offers new ways to pool resources and isolate risks to reduce turbulence in the industry. One emerging use case can be found with special purpose vehicles (SPVs), a legal entity created to fulfill narrow, specific or temporary objectives. These are typically used by companies to isolate the firm from financial risk, and Syndicately is one of the only market solutions that offer a digital solution that removes this challenge from the process.
Syndicately also offers an API platform with a set of tools that allows third parties to build or integrate private and alternative asset investments in a streamlined and repeatable way. This makes it easier for issuers to get their private placement or other asset products in front of a larger investor audience.
The consultant driving well-informed deal decisions
Syndicately was founded by Jake Claver, a Web3 investor and strategic consultant who helps organizations reach their potential by supporting business leaders in making calculated and well-informed decisions.
Over the past decade he has built a prolific consulting business and continues to work with the best and brightest clients. As a result of working with a wide range of clients in a variety of industries for many years, Jake has developed a comprehensive understanding of highly effective business practices with experience spanning market analysis, financial oversight, and risk management.
His expertise in implementing emerging blockchain and web3 technologies such as smart contracts, NFTs, DAOs, and the metaverse has given his clients a significant advantage over their competitors which sparked the idea to offer more digital solutions for the private investment market, paving the way for Syndicately.
With significant expertise and a tailored digital platform, Jake and Syndicately are poised to help more firms achieve success in growing profitable companies.
This article includes a partner of an Espacio portfolio company
