Luxembourg Fintech Fundcraft Increases Series A Funding to €11m

On Monday 4 November 2024, fundcraft, a Luxembourg-based fintech specialising in digital fund operations, announced the final closing of its Series A round with a €6 million investment led by 3VC and MiddleGame Ventures.

This investment builds on the first closing of €5 million Series A announced in May 2024, which was led by Aperture Capital with participation from SIX Fintech Ventures. With a total amount of €11 million raised this year, fundcraft is set to "accelerate its product and geographical expansion" and "cement its standing as Europe's premier digital fund operations provider".

As reported by the fintech, the additional investment reflects continued confidence in fundcraft's "innovative approach" to re-architecting fund operations by combining advanced technology and expert services. Reflecting on recent growth, fundcraft noted that it has achieved a 60% increase in the number of funds managed since the initial Series A announcement in May 2024, representing more than €8.1 billion in commitments.

Julien De Mayer, founder and CEO of fundcraft, stated: "This additional investment builds on our strong momentum as we continue to deliver on our mission to digitise and transform fund operations for alternative asset managers. Together with co-founders Olga Porro and Victor Martin, we see a unique opportunity to accelerate our expansion, delivering solutions that no other competitor can currently match. The support and endorsement from 3VC and MiddleGame Ventures, two leading VC firms dedicated to category-defining companies, enables us to scale faster and seize this market opportunity with confidence."

The fintech reported that the additional funding will support several key initiatives:

- product development: fundcraft will accelerate the development of its digital fund operations platform, focusing on automation, operational efficiency and transparency to meet growing demand from alternative investment asset managers, notably mid-market private equity funds with complex needs for integrated digital solutions, building on its existing solutions for venture capital and fund of funds;

- geographic expansion: fundcraft aims to deepen support across Europe, servicing funds domiciled in international markets beyond Luxembourg, as the increasing focus on alternative investment markets and the need for digital fund operations rises;

- talent acquisition: fundcraft will continue building top-tier teams in fund operations, digital product development, and sales and marketing to support client needs and seize market opportunities.

Eva Arh, Partner at 3VC, commented: "Fundcraft's product and vision position them as a standout leader in digital fund operations. In a market where fund managers often struggle with cumbersome and inefficient fund admin processes - relying on manual tasks, back-and-forth emails and Excel sheets - fundcraft brings a proven solution to established firms looking to launch new funds or migrate existing ones on a digital platform. This aligns perfectly with our thesis of investing in category-defining products, and we're proud to support fundcraft as they scale rapidly across Europe, reshaping operations for the next generation of alternative asset managers."

Pascal Bouvier, Managing Partner at MiddleGame Ventures, added: "As a strategic investor and a client of fundcraft, we see firsthand how their digital fund operations suite streamlines fund administration. Our investment underscores our confidence in fundcraft's ability to set new standards in efficiency and transparency within the industry."