Passthrough, a New York-based fund workflow automation for investors, fund managers, and other fintechs, announced that it raised $10 million in Series A funding. This brings the total amount of funding to $15 million.
The round was led by Positive Sum, with participation from Motley Fool Ventures, Broadhaven Ventures, and returning investors Company Ventures and Great Oaks VC.
Additional strategic angel investors and operators participated in this round, including Kelsey Chase (co-founder at Aumni, Inc.); David Reuter (Partner at LLR Partners); Adam Demuyakor (Founder and Managing Partner of Wilshire Lane); Eric Bahn (General Partner at Hustle Fund); and Peter Fader (Professor at the Wharton School of the University of Pennsylvania).
In addition to the new funding, Passthrough launched their latest, standalone anti-money laundering and know-your-customer offering, which collects information from investors, screens it against domestic and international sanctions lists, and provides case management tools to ensure regulatory compliance.
“Fund managers spend months and sometimes years convincing investors to invest in their funds, so why introduce friction just when you’re getting them over the finish line?” says Tim Flannery, Passthrough’s CEO, and Co-Founder. “We provide them with a premium investor experience (a competitive advantage when it's hard to raise capital), better tools to manage the raise that fit with their tech stack, and efficiency that translates into cost savings. This new funding will help accelerate Passthrough’s growth and enhance our product experience.”
The company’s mission is to become the default fund closing platform for fund managers, fintechs, and other large asset managers by combining seamless fund workflows with structured, interoperable investor identity information.
With Passthrough, investors are able to speed through the fundraising process on subsequent funds with just a few clicks, allowing fund managers to close capital commitments in minutes instead of weeks.
Julius Leiman-Cabria, who held executive and leadership positions at firms including Wealthfront, Carta, JPMorgan Chase, MUFG, and the SEC, joined Passthrough’s executive team as Chief Legal & Compliance Officer to guide the compliance product.
Company: Passthrough, Inc.
Round: Series A
Funding Month: February 2023
Lead Investors: Positive Sum
Additional Investors: Motley Fool Ventures, Broadhaven Ventures, Company Ventures, Great Oaks VC, Kelsey Chase, David Reuter, Adam Demuyakor, Eric Bahn, and Peter Fader
Company Website: https://www.passthrough.com/
Software Category: Fund Workflow Automation
About the Company: Founded in 2020, by 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 built in for future use. In addition to subscription documents, Passthrough also offers a comprehensive AML & KYC compliance product that collects information from investors so fund managers can remain compliant. Passthrough turns workflows like subscription document execution into solved problems – seamlessly manages subscription document distribution, execution, and compliance in minutes.