Automating back-office operations so fund managers can close capital commitments faster
February 15, 2022
NEW YORK – Passthrough, a data-driven subscription document platform that seamlessly automates, distributes, executes, and manages the subscription process for fund managers and their investors, today announced it has raised $5 million. Positive Sum led the round with participation from Okta Ventures, Great Oaks VC, and Company Ventures.
Additional strategic angel investors and operators also participated in the round including Samir Kaji (Founder and CEO of Allocate); Bob Moore (CEO of Crossbeam); Josh Smith (co-founder and former CEO of Solovis, a leading institutional investment portfolio management system); Marshall Boyd (Co-President/Chief Investment Officer at Interstate Equities Corp.); Andrea Walne (General Partner at Manhattan Venture Partners); Daniel McAuley (Data Science at Instagram); Winter Mead (CEO and Managing Member at Coolwater Capital); and Deanna Fong (Program Manager at Meta and Former Head of Compliance at Carta).
Passthrough enables fund managers to collaborate with their advisors and service providers in closing funds across private equity, real estate, venture capital, and other private investment vehicles. With the ability to turn any subscription agreement into conditional logic, investors only answer questions relevant to them, while fund managers coordinate fund administrators, law firms, and other third parties with ease. Additionally, Passthrough captures highly valuable data from investors that they can choose to replicate across future investments. By creating a data passport for investors that have used Passthrough, fund managers speed through the fundraising process on subsequent funds.
“This past year accelerated the consumerization of private markets, driving more investors, fund managers, lawyers, and fund administrators to search for better investing solutions,” says Tim Flannery, Passthrough Co-Founder. “As today’s private markets look more and more like the public markets, companies like Passthrough will need to fill the gap for everyone that’s involved so that the infrastructure doesn’t break,” says Flannery. “This funding will drive our product to meet customer demand and we couldn’t be more thrilled from the support of our family, friends, investors, and customers.”
“When we met Passthrough, their vision for APIs that make investing processes seamless set them apart,” says Patrick O’Shaughnessy, Partner at Positive Sum. “The subscription agreement product the team built demonstrated the first step towards the kind of infrastructure the investing world needs, and customers truly loved working with them,” says O’Shaughnessy. “I believe Passthrough can be the dominant leader in fund workflow automation.”
The funding will be used to hire multiple new team members across offices in New York, Philadelphia, and remote. The team will be critical in expanding the product’s rapid growth and improving the investor’s data interoperability so investors can utilize their investor passport to its full potential.
Passthrough seamlessly manages subscription document distribution, execution, and compliance. Founded by former leaders from the Carta Investors Services team Alex Laplante, Ben Doran, and Tim Flannery, Passthrough provides an integrated platform solution that makes the subscription document process turnkey for investors with replicable and verifiable identity information for future use. To learn more please visit https://www.passthrough.com/.