- Arch — an investment platform for private investment communications in one portal with one login — recently announced their $5.5 million seed funding round. These are the details.
Arch — an investment platform for private investment communications in one portal with one login — recently announced their $5.5 million seed funding round led by Craft Ventures with participation from Animal Capital, Good Friends (started by the founders of Warby Parker, Harry’s, and Allbirds), Vine Ventures, Soma Capital, Henry Ward (CEO and Co-founder of Carta), and over 25 current Arch clients.
And since launching publicly in June 2020, Arch has grown annualized recurring revenue by over 1,100%, and the private assets managed on Arch have experienced over 2,300% growth. On average, investors using Arch report spend 35% less time managing their investments.
Through Arch, investors are able to manage their investments in one place, at 5x the speed they worked before. And Arch connects with the back office for each private investment, receiving all documents and communications in a secure, aggregated platform.
The platform collects tax documents across every investment, organizes critical information from hundreds and even tens of thousands of separate portals, and delivers these documents automatically to Accountants and Tax Advisors. And Arch manages company updates, taxes, capital calls, distributions, and financial statements, allowing investors to quickly review their Arch dashboard to see what they own, owe in unfunded commitments, and their latest cash flows. Arch is the first alternatives data aggregation service to deliver data directly to Addepar via API integration. Arch also connects with Black Diamond, APX, and other portfolio reporting systems.
With this new funding round, Arch will expand its platform of financial management tools to give users more visibility and control of their money than ever before. And the company plans to rapidly grow its New York-based team and is hiring in operations, partnerships, and engineering. Arch plans future platform expansions to support Foundations, Endowments, Pension Funds, and Sovereign Wealth Funds, alongside individual investors.
KEY QUOTES:
“Arch immediately allowed Three Bell to transition away from manually entering thousands of private investment performance metrics each month, to a fully automated system, reduced operations workload by over 90%, eliminated the potential for manual entry errors, and accelerated reporting timetables. In addition to streamlining and automating our performance reporting processes, Arch aggregates all private investment K-1’s, eliminating the heavy lifting clients dread when they are preparing their taxes each year.”
— Jon Porter, CEO of Three Bell Capital and current Arch customer
“Arch brings much-needed efficiency, speed and convenience to investment managers, high net-worth families, institutional investors and tax advisors. Today, investment paperwork is mired in inconsistent pdfs, needle-in-the-haystack emails, and disparate portals. Arch fixes that by providing investors and their advisors with a single portal and a consistent interface for each investment. This streamlines capital calls, distributions, reporting and tax preparation. After using the product myself and spending time with Ryan, it was an easy decision to invest.”
— Jeff Fluhr, lead investor in Arch’s Seed Round, co-founder and General Partner at Craft Ventures
“Arch brings unprecedented speed and convenience to private investment management, a space that has remained largely nascent despite the massive size of the opportunity. Arch automates repetitive, manual tasks, providing better organization and insights into a private portfolio to save users valuable time, and ultimately enables them to make better financial decisions that protect their financial livelihoods and better achieve their personal financial goals. This in turn more efficiently directs capital to companies and firms that have a higher likelihood of both financial success and driving the world forward.”
— Ryan Eisenman, co-founder and CEO of Arch, who co-founded the company with MIT software engineers Joel Stein and Jason Trigg
