Sydney fintech Reach Alternative Investmentshas raised $2.2 million in an oversubscribed Seed round.
The raise was led by VC Carthona Capital, with Reachs post-money valuation hitting $11.2 million just eight months after it emerged from the Antler program.
Reach CEO and co-founder Sam Phillips said more than $3 million was on the table, exceeding their hard cap of $2 million.
We are pleased with the support from our investors, its strong validation for Reach as well an indication of the recognised demand for what we are bringing to market, he said.
Our mission is to open access to quality private market investments and the worlds leading fund managers, and the institutional-grade funds they run.
Reachs investor portal will give clients access to some of the worlds leading private equity funds. They typically require a minimum investment of US$10 million, however Reach will offer access little as US$75,000. It is also building a secondary market, with community-led liquidity.
Phillips, a globally experienced 20-year veteran as a regulated responsible officer of financial institutions, said hes looking forward to linking top-tier private market funds with Australias sophisticated investor base.
Sophisticated investors are accredited with the experience to evaluate this calibre opportunity and we feel they should have the same access as institutions and the ultra-wealthy to these investments, he said.
There are over a million households in Australia that meet the criteria.
Phillips said mostinvestors have never had access to institutional funds and they have different attributes to retail funds.
Education is the key to effective investment and we take that mission seriously because we want our community to invest with their eyes wide open, he said.
Demand for quality private capital funds is set to increase in 2022 and we expect investors looking to lessen their exposure to listed equities, dampen volatility and find uncorrelated return will be seeking support along the way.
Carthona Capitals Dean Dorrell said Reach Alternative Investments is abusiness in the right place at the right time.
Theres a clear gap in the finance market where the mass affluent need but are largely denied access to the best private, global opportunities out there., he said.
The Reach tech is innovative, and importantly secure, and will enable customers to access those opportunities in a very user friendly way. We couldnt be happier to have led the round.