Venture capital firms face a unique set of challenges. From structuring funds to raising capital and deploying investments, the traditional methods have been cumbersome as well as time-consuming. Fintech platform Floww aims to bring transparency, efficiency and accessibility to the venture capital industry with the launch of FlowwFunds.
Supported by early adopter funds, including Force Over Mass, FlowwFunds is a full-stack, single and streamlined platform for venture capital funds. The design aims to simplify fund structuring, raising, and deployment while eliminating the administrative hassle, offering a one-stop solution that encompasses everything from constructing the investment management agreement (IMA) to handling custody, regulatory reporting, investor reporting, and paying agent services.
It also includes the use of Floww Certificates, a globally tradable instrument offering increased liquidity to investors while retaining tax benefits.
“The venture capital sector is in need of innovation and streamlining to function more efficiently. By addressing challenges that VCs face while running their funds, we believe we can unlock further growth and innovation across the ecosystem,” said Martijn de Wever, founder and CEO of Floww.
“Innovation and private companies are often starved of capital as VCs are overburdened with archaic and admin-heavy processes, leaving them too little time for deal flow and value-add for entrepreneurs. With FlowwFunds, we have created an efficient avenue for structuring, raising, and deploying capital, freeing VCs to focus on what they do best.”
According to Floww, FlowwFunds addresses a compatibility problem between pension funds and venture capital. It provides access to a wide range of sectors with insight into the most granular level and the right governance framework to deploy and track large amounts of capital.
“We are solving both technical and structural problems at the foundation of this large-scale ambition for pension funds to invest £50billion into VC by 2030 whilst addressing outstanding liquidity challenges that the current venture capital industry faces,” de Wever also said. “We are bringing a true working secondary market for companies and funds. Moving capital with the speed of innovation.”
Force Over Mass is one of the first VC firms to raise two funds on the FlowwFunds platform. It is raising a seed and growth fund focusing on B2B tech startups.
Scaling brands that have recently raised on Floww include SuperFi, a platform focused on solving the UK’s debt problem; PubX, a tech company using AI in the publishing market; as well as Careless Insurance in the personal items insurance market.