Consulting and financial management services startup Sydecar Inc. has raised $8.3 million in new funding to hire more people in engineering, customer experience, marketing and operations , with the aim of expanding its product offering.
Deciens Capital led the funding round announced today, with participation from Pipeline Capital Partners, Anthemis Group, Hustle Fund VC and various angel investors.
Founded in 2021, Sydecar offers tools designed to take the headache out of organizing private investments. The company markets itself as enabling users to “do business, not spreadsheets.”
Sydecar says its platform brings a standards-driven approach to venture capital investing. The service aims to reduce the regulatory burden for individual investors, increase transparency and offer liquidity with a fraction of the hassle. Its platform manages back-office operations for emerging venture capitalists, automating banking, compliance, contracting and reporting to eliminate operational headaches, costs and uncertainty of back office.
The company’s service streamlines the entire venture capital ecosystem by removing friction from the deal-closing process, according to the company. Features include the ability to create a special purpose fund or vehicle with support for custom investment deals, entity creation, instant banking and data rooms.
For investors, the platform offers SPV and syndicate administration, tax fund accounting, Form D and Blue Sky filings and distributions. Sydecar also offers investor onboarding, Know Your Customer and anti-money laundering checks, capital table management and accreditation checks.
Sydecar’s platform enables venture capitalists to follow the market, launching investment vehicles in minutes rather than days or weeks, while helping users navigate the many regulatory challenges of the market. venture capital investment. Although fairly young as a startup itself, Sydecar has already backed deals of $25,000 to $100 million for thousands of investors, claiming users have closed deals of $350 million. They include direct deals on its platform and through partnerships with companies such as Stonks Inc. and Allocate Holding Inc.
“After launching a venture capital fund with my co-founder David in 2018, I realized how painfully clunky and unnecessarily complex the process of fund creation can be,” said Nik Talreja, co-founder and CEO of Sydecar, in a statement. . “There was an immense amount of friction between putting capital to work, building relationships, and supporting founders.”