FundApps takes funds to accelerate growth –
FundApps chose Scottish Equity Partners (SEP) to help them develop their rapidly growing RegTech company. FundApps did not disclose details of the funding, but Andrew Patrick White, founder and CEO of FundApps, confirmed that it was a minority investment by the venture capital firm.
White commented: “We are delighted to have the SEP technology specialist on board. Having started our way since 2010, FundApps has experienced tremendous growth in recent years, but we’ve only just scratched the surface of the regulatory challenge. It is clear that at SEP we have found a long-term partner. One who not only understands the scale of the problem facing the global investment industry, but who is excited to work with us to bring transformative services to a sector that calls for more innovation. “
What will FundApps do with the money?
Enterprise Times asked White a few questions about the funding and what the company would do with it. FundApps currently has offices in the US, UK and Singapore and over 100 clients in 25 countries. Enterprise Times asked White if FundApps will open additional international offices in 2021, for example in Europe, China or the west coast of the United States.
White replied: “We just opened our newest office in Singapore in 2019, as APAC is a key growth area along with the United States and Canada. Due to the pandemic, the future of work is changing and we anticipate more of a balance between office and remote work. Until we find this balance, we have no plans to open any new offices. “
In addition to international growth, FundApps will also invest in its platform. What is on the roadmap for the product that this funding will help accelerate?
White replied: “Our ambition is to accelerate the delivery of a product roadmap that aggressively and consistently challenges the inefficiencies and fragmentation associated with financial regulation. This includes research and validation of essential regulatory data; automation of business processes and compliance controls for new regulatory packages; reports on high production value for stakeholders and investors; and the creation of a network of compliance professionals to benefit from a shared gold standard in regulatory compliance. “
The opportunity for FundApps is huge. Its solution is useful for any investment manager, including a hedge fund, asset manager, pension fund, investment bank or sovereign fund. White estimates that there are around 10,000 investment managers with an estimated AuM (assets under management) of over US $ 100 billion.
Enterprise also asked White to extend the platform to other AWS Regions where it is currently hosted. White replied, “Currently we are hosted on EU-west 1 from Amazon, Ireland our customers prefer. No immediate plans to expand accommodation, but it is something we could consider for a specific client. “
Scottish Equity Partners focuses on high growth technology companies. It invests primarily in the UK and Europe by funding up to £ 40million and, normally, as with FundApps, taking a minority stake. He also has experience in RegTech with AutoRek.
Angus Conroy, Director of SEP, said: “FundApps offers an exceptional software solution for asset managers and banks, enabling the automation of increasingly complex regulatory reporting requirements. The company enjoys an excellent reputation with its customers for product innovation, proactive support and the cutting-edge underlying technology.
“New customers who join the platform gain access to a growing community of compliance professionals using the service. We see tremendous growth potential and are delighted to join the FundApps team at this exciting time in the company’s development. “
Enterprise Times asked White why they chose SEP.
“We were inundated with interested parties, but SEP was quickly shortlisted and won because of their impressive track record, experience in growth stocks, but mainly because of their world-class team.”
What is FundApps
FundApps offers compliance as a service (CaaS) for investment managers. It helps investment managers shoulder the burden of compliance through a combination of cloud technology, regulatory expertise, market data and the unique FundApps community. Its RegTech platform simplifies compliance and allows investment managers to spend more time on value-added tasks. FundApps already oversees over 10% of global assets under management and is looking to grow further in terms of assets under watch and customer base. Clients include Deka, Vontobel, Ontario Teachers Plan, a major Canadian pension fund, VIK D and multi-billion asset managers.
Its platform includes three CaaS offers.
Disclosure of shareholding
It is updated daily using integrations with third-party sources such as Aosphere, ESMA, and SEC. This oversees disclosure requirements for major shareholding, short selling and takeover panels and includes pre-filled disclosure forms for relevant regulators. Features include:
- Denominator checking highlights differences between denominator values (e.g. total outstanding shares) uploaded by FundApps customers
- Room-in-a-name, calculating how much can be traded in an issuer before the next threshold
- Global business database
- Business Intelligence Reports on Historical Disclosure Documents
This service monitors sensitive industries and foreign ownership. It includes relevant legal information from different industries noting restrictions using global industry classifications for specific industry legislations. Features include:
- Proven technology and leading legal information provided by aosphere
- Automated monitoring from a single dashboard with email alerts and daily email updates
- Room-in-a-name for sensitive industries
- Business Intelligence Reports
Simplifies the process of monitoring derivative limits on various exchanges around the world. Position data is updated regularly. Features include:
- Automated monitoring with alert via email, dashboard or directly to a trading system using API integration
- Trading calendars include data from different exchanges in one place
- Compensation and aggregation automatically calculate exposures
- Pre-trade monitoring connects compliance teams with portfolio managers and traders through reports and a data feed that can be loaded directly into trading systems.
Enterprise Times: what does it mean
FundApps is one of several UK startups hoping to grow their business to reach $ 1 billion in revenue. White believes there is enough market to do this, and the business is already off to a good start. The question is whether he can do it without succumbing to an acquisition.
He already has several notable clients. Can it convince more international customers and meet their needs without being present in more countries? How will he continue to expand his solution? FundApps is a business with the potential to become a major success and definitely one to watch.