![“This [fundraising] will enable us to move into new markets and add new asset classes to the platform,” said Julien De Mayer, Fundcraft founder and CEO, announcing the closing of €5m series A funding round. Photo: fundcraft](https://assets.paperjam.lu/images/articles/luxembourg-s-fundcraft-secures/0.5/0.5/640/426/651199.jpg)
Luxembourg-based Fundcraft has secured €5 m in Series A funding, led by Aperture Capital, the investment arm of Switzerland’s Aperture Group, with participation from Six Fintech Ventures and early supporters. This investment, disclosed on 7 May 2024, aims to support Fundcraft’s product development and global expansion efforts.
The fund administration sector, valued at $50bn annually within the alternative asset management market, faces significant inefficiencies despite its size, scoring only 2.3 out of 5 for digital maturity, said Fundcraft, referencing an EY study. Recognising this, Fundcraft aims to position itself to streamline operations with a technology-centric approach.
Fundcraft’s platform automates fund administration processes, enabling collaboration among stakeholders such as lawyers, bankers, auditors and accountants. Fundcraft counts 22 asset managers amongst its clients managing more than €6bn across 135 funds.
The series A funding will facilitate Fundcraft’s expansion beyond Luxembourg-domiciled funds into new markets like Spain and Germany, said the firm in the press statement. Additionally, the company aims to diversify its offerings beyond venture capital, private equity and fund of funds. Julien De Mayer, Fundcraft’s founder and CEO, expressed optimism for the company’s growth prospects, citing strong partnerships. co-founder and chief product officer, Olga Porro, highlighted the potential for enhanced efficiency and transparency, while co-founder and chief technology officer, Victor Martin, stressed the role of technology in driving industry change.
Beyond financial backing, Fundcraft’s collaboration with investors extends to strategic support. Aperture Capital and Six Group underscored the industry’s recognition of Fundcraft’s transformative potential. Commenting on the investment, Ben Robinson, CEO of Aperture Group, stated, “We believe Fundcraft has the right model to transform asset servicing. We have seen for ourselves the inefficiency in this industry, and we’re convinced something radically different is needed. Fundcraft’s model captures both supply-side economies of scale, by digitising fund administration end-to-end, and also demand-side economies of scale by orchestrating the fund administration value chain.”