Berlin-based fintech startup Bunch has recently secured €14.2 million in a Series A funding round, aimed at transforming the private market investment landscape. This funding round was led by Cherry Ventures, with participation from Embedded/capital and prominent angel investors, including founders from Adyen, Klarna, and Juni.
Background
Bunch was founded in late 2021 by Enrico Ohnemüller and Levent Altunel. The startup aims to democratize private market investments by providing a digital platform that simplifies and automates the investment process. The founders, leveraging their extensive experience in public and private markets, identified significant barriers in private investments, such as cumbersome administrative tasks and limited access for smaller investors.
Details of the Funding Round
The €14.2 million Series A funding round was led by Cherry Ventures, a venture capital firm known for investing in high-growth technology companies. Other participants included Embedded/capital and several notable angel investors from the fintech industry. The raised funds will be used to expand Bunch’s operations geographically, enhance its technology, and diversify its asset class offerings. This follows an earlier seed funding round in which Bunch raised €7.3 million, bringing their total funding to approximately €22 million.
Platform Features and Benefits
Bunch offers a robust digital platform known as Bunch OS, designed to simplify and professionalize private market investments. The platform enables investors to create investment syndicates and manage their investments seamlessly. Key features include:
- Entity Formation: Digital setup of investment entities using partners or integrated law firms.
- Onboarding Suite: Digital fund subscription with integrated KYC (Know Your Customer) and AML (Anti-Money Laundering) checks.
- AIFM Services: Reduced regulatory complexity through Authorized Alternative Investment Fund Manager services.
- Investor Reporting & Accounting: Automated bookkeeping, fund accounting, and performance reporting.
- Portfolio Monitoring: Comprehensive tracking and reporting of investment performance with AI data extraction.
- Investor Portal: Secure data rooms and streamlined administration for investor relations.
- Treasury: Integrated payment accounts and cash management.
- Compliance Hub: Real-time AML monitoring and compliance reporting.
“Alternative Assets are the fastest-growing asset class, yet their operational processes remain stuck in the past,”
Levent Altunel, co-founder of Bunch
“Our Series A funding will accelerate bunch’s mission to bring this trillion-dollar industry into the 21st century, driving a much-needed digital transformation. We are thrilled to have true private market experts as investors supporting our vision of transforming the space and are excited to bring our innovative solutions to more investors across Europe and beyond.”
Enrico Ohnemüller, co-founder of Bunch
Market Context
The private market investment landscape has seen significant growth over the past decade, with nearly $10 trillion in assets under management. This growth has been driven by investors seeking higher returns and diversification outside public markets. However, private market investments have traditionally been limited to those with substantial capital and access to exclusive opportunities. Bunch aims to democratize access to these markets by providing tools and infrastructure that were previously available only to large institutional investors.
Future Outlook
Bunch aims to leverage its recent funding to expand its geographical reach, particularly targeting the UK market, and to diversify its asset offerings. The company plans to enhance its platform’s technical and product development, making it easier for investors to participate in private markets. This includes expanding into new asset classes and jurisdictions to fully unlock the potential of private market investments.
Bunch’s long-term vision is to democratize access to private markets, providing tools that were previously available only to large institutional investors. The company is focusing on reducing the complexities and costs associated with setting up and managing investment entities, thereby making private market investments more accessible to a broader range of investors.
Conclusion
Bunch’s successful €14.2 million Series A funding round marks a significant step in its mission to transform private market investments. By providing a comprehensive digital platform, Bunch is addressing key barriers in private market investments, such as limited access and administrative complexities. With plans to expand geographically and diversify its offerings, Bunch is well-positioned to make private market investments more accessible and efficient for a wider range of investors. This innovative approach not only simplifies the investment process but also democratizes access to opportunities that were previously out of reach for smaller investors.
