- London-based fintech Vauban wants to tackle the American investment platform AngelList.
- This speeds up the process for angel investors to form investor syndicates or VCs to attract investors for new liquidity.
- Its users include venture capitalists, a Xoogler syndicate, and a vehicle for African startups.
London-based start-up Vauban is betting that the booming European venture capital industry will boost its global alternative to the American investment platform AngelList.
Vauban, founded by French entrepreneurs Ulric Musset and Rémy Astie, makes it easier to start and manage an online venture capital firm. The startup is reducing entry barriers for investors to set up new special purpose vehicles (SPVs), a type of fund structure, by digitizing much of the process.
Astie, the startup’s chief technology officer, said it was a high potential market and suggested the previous fund-building process could take up to six months.
“We’re a platform that makes it easy to run an online venture capital firm, launch your fund and SPVs in just two days,” Astie told Insider.
“It’s a lot cheaper, faster and easier than the existing process, but it’s a tough market and it’s very heavy on infrastructure.”
In December 2020, Vauban announced that it had provided $ 6.3 million in pre-Series A funding to help its growth. UK investors Outward Ventures and Pentech led the round, which came after previous rounds totaling $ 3.4 million from investors such as West Loop Ventures and Kima Ventures.
Vauban’s funding came as the European tech scene attracts recent levels of venture capital investment. Startups in the region are set to raise more than $ 100 billion this year, breaking previous records and bringing the region closer to the United States and Asia.
Astie said the company’s global ambitions give it an advantage over operations like AngelList, which lean toward the United States. San Francisco-based AngelList creates about 600 funds per month and reports about $ 1 billion in carry-over funds each year. The US platform connects VCs and investors with suitable startups looking for new funding.
“Being international as a platform is very powerful for us,” said Astie. “For a globalized world, this is very important for private investors as they have a lot of LPs outside of their home country, working in multiple currencies and jurisdictions while AngelList is very American.”
The company has around 5,000 LPs on its platform and has venture capital funds like Passion Capital London, Octopus Ventures and Anthemis as clients. Vauban indicates on his website as an example that he charges € 19,500 ($ 22,000) for the formation of venture capital funds, compared to € 40,000 ($ 45,000) for the same department of a firm. lawyers.
Despite the surge in capital invested in startups in recent years, the lengthy processes to raise and leverage funds can be off-putting and cumbersome for funds, especially smaller offerings.
Angel investors and small funds may become bigger players as the surrounding ecosystem democratizes, according to Outward Ventures.
The investment firm also noted that small investors can syndicate pre-emptive rights over their network for larger and larger follow-up rounds in exchange for a carry. In short, this means that investors can more easily team up to buy more shares in their investments as the towers gain momentum, thereby buying themselves a right of first refusal.
Vauban’s growth also comes at a time when new types of investors are entering venture capital both in the United States and in Europe, such as micro-venture capital funds with a small number of partners or solo funds.