Vauban, an AngelList-esque platform for VCs and angels to run and fundraise, shuts down $6.3M - TechCrunch - Gadgets Price
Wed. Dec 8th, 2021
Vauban, an AngelList-esque platform for VCs and angels to run and fundraise, shuts down $6.3M - TechCrunch

It’s always been a little puzzle as to why AngelList never really properly started in Europe, especially when there was such a lack of financing options for poorly served European startups a few years ago. But the reasons are quite simple when you look at it. For starters, the US tech industry has exploded in the last decade. Why bother spreading your resources when your home market is taking off, right? Second, the sheer complexity of building such a platform across Europe’s myriad regulatory borders would tend to deter even the most courageous of actors. That’s why the market for such a fundraising platform has been more or less wide open for so long. Until now.

Vauban is a new London-based startup that provides venture capital fund managers with the tools to raise a fund and invest capital. It has now closed a £4.7 million or $6.3 million Post-Seed/Pre-Series A funding round.

Vauban says it will now deepen its technical and regulatory infrastructure and open a new office in Luxembourg to bolster its European/EU offering, alongside its London headquarters. In this way it can span the entire European ecosystem.

The investment round was co-led by Pentech and Outward, alongside 7 percent Ventures and MJ Hudson. A roster of angel investors also participated, including Nested CEO Matt Robinson; Grabayo founder, Will Neale; the founder and CEO of ComplyAdvantage, Charles Delingpole; Partner at Augmentum Fintech Perry Blacher; and Al Giles, of legal services firm Axiom.

Vauban enables VCs and angel investors to fundraise, establish angel syndicates, and manage fundraising and investment activities. The platform claims it will enable users to set up and deploy funds and SPVs, from multiple global investment jurisdictions, at “a fraction of the usual time and cost” including structuring, legal documents, investor onboarding, banking and report.

Vauban says it onboards “at least one new client every day” and current VC users include Anthemis, Passion Capital and Octopus Ventures. In total, it says that more than 5,000 LPs use its platform.

Founder and co-CEO Rémy Astié said: “Our goal is to reduce friction between those who have the capital and those who need it to solve humanity’s greatest problems. So we decided to start rebuilding the infrastructure on digital rails because it is critical to provide great UX to everyone in the industry: GPs, LPs and founders.”

Vauban has appeared at a time when there is huge investment activity in European technology. In the first half of 2021, approximately €41.8 billion was raised across Europe, compared to €32.6 billion in 2020.

With VC firms now managing a variety of funds and now often using Special Purpose Vehicles (SPVs) to participate in specific deals, make secondary investments or set up “sidecar” funds alongside EIS vehicles or their main institutional funds, the whole process more complex, hence the increasing ‘platformisation’ of the space. If you do all this on spreadsheets or similar simple tools, it is no longer enough.

In addition, European angel investors are increasingly professionalizing and syndicating deals to boost deal making and deal flow, hence a dedicated platform is likely to be welcome.

Ulric Musset, Founder and Co-CEO says, “One of the biggest catalysts for creating new startups was the launch of Amazon Web Services in the early 2000s. We believe Vauban will have the same impact AWS has on the startup ecosystem.”

Andi Kazeroonian, investor at Outward VC, commented: “Despite the rapid growth of alternative investments in recent years, the infrastructure on which the industry relies has not evolved. Creating and managing an investment vehicle simply remains synonymous with lengthy, cumbersome and expensive processes fragmented across multiple service providers.Vauban’s integrated platform has turned this on its head with a relentless focus on product and user experience, unsurprisingly leading to exceptional organic growth and its emergence as the standout category leader in Europe .”

Craig Anderson, Partner at Pentech added: “We like to invest in leading companies with high growth ambitions. We believe that Vauban is building a modern infrastructure for the alternative asset market, allowing users to set up, deploy and manage their funds and SPVs in just a few hours.”

Founder and co-CEO Rémy Astié told me during a phone call: “We are different from AngelList because we are very international and global by nature. The idea is to create a global platform which means you can recruit from LPS anywhere in the world to invest in a company that is anywhere in the world. And yes, we think that’s our core strength, that we build everything with international LPs in mind, so you can collect in multiple currencies.”

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