For so long, the private markets have been dominated by fax machines, spreadsheets, emails, and PDFs. Tools of old.
But the time is coming where this just won’t do — they’re not fast enough.
As Josh Kopelman of First Round Capital says: “...the time from first email/contact to term sheet has shrunk from 90 days in 2004 to just 9 today.”
In the new hyper-competitive (and now decentralized) private markets, fund managers and solo GPs demand reliable, digitized, fast service. Plus a complete suite of tools that can keep up with their workflows.
Global shift to remote working highlights importance of service providers
The work world is going remote fast.
This means founders don’t need to hop on planes to secure funding anymore. They can just hop on Zoom and get term sheets delivered to their inbox within days.
As such, fund managers have had to adapt.
Couple that with an expanding pool of accredited investors and you have a venture scene that’s wildly competitive. Deals are closing in days.
Yet the tools available to fund managers are dated. This leaves fund managers duct taping their workflows together. This is one of the problems we hope to solve at Allocations.
Here's what a $100M+ fund manager told Preqin in their 2019 report about fund managers and service providers.
There’s no doubt they feel the same way in 2022:
“Service providers need to operate in a seamless, efficient, cost-effective manner. Using technology as much as possible yet also having clear communication.”
Preqin also found that 3 out of 4 fund managers changed service providers in 2019 — a trend that has likely accelerated, given how fast fund managers need to move to win deals. In this new world, we envision an all-in-one platform for fund managers that removes the need to switch providers all the time. We think the solution lies in well designed software.
Allocations was designed to fit the needs of the modern fund manager
When our founder Kingsley Advani needed a tool to run his own investments, he was shocked at the lack of engineers working on the problems he had as a fund manager.Sure, the industry was full of service providers and products. But the products were poorly designed and the service took too long.
He needed something faster. So he started building.
Fast forward to today:
- Allocations offers a “one-click” experience for our fund managers and their LPs for nearly any of their workflows
- Our engineering and design teams work side by side in real-time to test, iterate, and ship quality products on a consistent basis
- We focus on systems and documentation in all of our teams to prevent information blackboxes, delivering a streamlined experience for our clients
We’ve seen the rapid acceleration of the private markets over the past 2 years, which is why it’s so important to build fast, reliable, well designed software. But building software won’t solve the entire problem — quality, responsive service plays a critical role too.
Robust, global Client Experience team
By building a team that’s diverse and global, we’re able to service our clients fast.
Eric Cohen of InterDigital had these kind remarks:
“I set up my first SPV on Allocations today. Kudos to you. It was simple! So easy. Hassle free. Really great job and the customer service was great. I’ll be doing SPVs with Allocations going forward. Really a good experience compared to the others.”
Mario Moscatiello of Flex Capital shopped around but settled on Allocations:
“…we were very impressed by how Allocations handled our SPV. We’ve tried almost all the existing platforms, and Allocations was by far the best of the breed. Thank you! We firmly believe that Allocations can become the new standard in fund creation and management over the next few years.”
We take pride in these testimonials because we design for these outcomes whenever we can.
Our Client Experience team works extremely hard to maintain consistency too:
- Our initial response time is 15 minutes maximum
- Our average resolution time is 90 minutes
When you build a decentralized, globally distributed Client Experience team, you’re less prone to accidents you can’t plan for. Our clients can rely on us year-round, even in the tightest of deadlines. We’re so passionate we’ve even set world records — our fastest SPV was done in less than 3 hours!
Planning for the future
We’ve asked our clients what else they’d like us to build. Our mission is to build a complete suite of tools, products, and services to fit any use case a fund manager might have. On our roadmap are things like:
- Instant SPVs
- Crypto SPVs
- Crypto payments
- Microservices (Institutional API, Instant Banking, Crowdfunding, etc.)
We’d love for you to join us. To get updates and early access to our upcoming products, join our waitlist now.
Or you can build your Fund or SPV on Allocations today.