Digital investment platform Allocate announces $15.3m Series A funding to expand access to venture capital investing

Digital investment platform Allocate announces $15.3m Series A funding to expand access to venture capital investing

Published: 06-05-2022 09:20:00 | By: Pie Kamau | hits: 346 | Tags:

Allocate, a digital investment platform that provides investors a streamlined way to access top-tier venture funds and co-investments, announced a $15.3 million Series A funding round. This 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.

Samir Kaji and Hana Yang, Co-founders, Allocate: "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." 

Despite launching the platform only six months ago, Allocate has onboarded over 200 family offices and wealth advisory firms, who have allocated over $125 million 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.

Carter Reum, Co-founder M13: "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.