Formulary Financial has emerged from stealth with $4.6 million in seed funding to launch what it calls a full-service, AI-native fund administration business aimed at modernizing back-office operations for private market investors. The round was led by Khosla Ventures, with participation from Acrew Capital, Company Ventures, Human Ventures, Serena Ventures, Alumni Ventures, and a group of strategic partners and industry executives.
Based in New York City and founded in 2025, Formulary says it provides end-to-end fund administration across accounting, reporting, compliance, audit support, capital activity, and investor communications. The company positions its platform as a replacement for the fragmented mix of spreadsheets, legacy systems and “shadow” fund administration processes that many private equity, growth equity and venture capital firms still rely on—conditions it argues contribute to delayed reporting, inconsistent data and added operational risk.
Formulary’s pitch centers on building a structured data foundation as the core layer of fund administration, rather than adding automation on top of legacy workflows. The company says its platform integrates external and internal data sources to create an auditable “single source of truth,” updates records in real time rather than on quarterly cycles, and embeds AI into operational workflows, enabling accountants to spend more time on advisory and exception handling rather than on repetitive reconciliation and data entry.
Founder and CEO Alfia Ilicheva said she started Formulary to make fund administration a strategic advantage instead of a chronic bottleneck, citing her experience at Bridgewater Associates as an influence on the company’s data-driven approach. She argued that private capital markets have lagged public markets in operational infrastructure, leaving firms with manual processes, poor data quality, and redundant parallel accounting practices that drive up costs and slow decision-making for both general partners and limited partners.
Khosla Ventures partner Hari Arul said the firm backed Formulary because AI must be foundational—not an add-on—to modernize fund administration, emphasizing the company’s focus on solving the “unreliable, inconsistent data” problem that underpins many downstream reporting and service issues.
Formulary said it already works with clients and design partners managing billions of dollars in assets under management, using the platform to reduce manual work and accelerate reporting cycles. The company plans to use the seed capital to expand product development and scale delivery of its fund administration services as it targets firms seeking faster closes, cleaner data, and a more responsive investor reporting experience.
KEY QUOTES:
“We founded Formulary to transform fund administration from a pain point into a strategic advantage for asset managers. At Bridgewater Associates, I saw firsthand the power of a systematic, data-driven approach to develop a rich understanding of global markets and deliver thought partnership to the world’s largest, most sophisticated investors. We are now bringing data systemization to private capital markets, where operational infrastructure has long lagged behind the needs of investors.”
“Today, fund administration is defined by manual reconciliation, poor data quality, and massive opportunity cost. Most firms run redundant parallel accounting processes to manage their capital flows. Formulary reimagines fund administration from the ground up, where AI powers fund accounting workflows, accelerates productivity, and generates tailored insights for clients.”
Alfia Ilicheva, Founder and CEO, Formulary Financial
“To modernize fund administration, AI cannot be a feature, it has to be the foundation. The Formulary team is strategically positioned at the intersection of investment management, AI/ML, and fund accounting. Importantly, they are solving the fundamental issue of unreliable, inconsistent data. Their early customers are already seeing the value of a platform designed for accuracy from day one, and we are excited to back their vision.”
Hari Arul, Khosla Ventures
