Passthrough, a leader in fund workflow automation for investors, fund managers, and other fintechs announced today that they have raised $10 million in Series A funding. This brings the total amount of funding to $15 million. Positive Sum returned to lead the round, 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. 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.
“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 & 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.”
“Passthrough solves the friction of closing funds, and is adding additional workflows that improve investor onboarding at every layer,” says Patrick O’Shaughnessy, Partner & CEO at Positive Sum. “Every investor I talk to feels the pain in fund closing, and to have a company like Passthrough inventing solutions makes operating a fund so much easier. We are proud to lead another round of investment so they can continue solving these problems – single handedly changing the future of fund workflow automation.”
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. Their 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.
“Passthrough has been transformational to our investor onboarding processes and has enabled us to streamline information flows between our investor base, fund administrators, and operations teams, all while delivering a more simplified experience for our limited partners,” says Tom Hoban, Chief Operating Officer at G Squared. “The Passthrough team has been terrific at customizing the platform to fit around our subscription documents and process needs, and we are very excited to continue to utilize the product in our future endeavors with investors.”
Later this year, a new API integration offering will provide an embeddable fund closing option for enterprises and other fintechs, with improved customization for a seamless experience in meeting fund workflow needs.
About Passthrough
Passthrough turns workflows like subscription document execution into solved problems – seamlessly manages subscription document distribution, execution, and compliance in minutes. 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 built in for future use. In addition to subscription documents, Passthrough also offers a comprehensive AML & KYC compliance product which collects information from investors so fund managers can remain compliant. To learn more please visit https://www.passthrough.com/.
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