How Much Did Passthrough Raise? Funding & Key Investors

Passthrough has successfully raised funding over three rounds, with the latest being a Series A round. The company is backed by 14 investors, including Positive Sum and Kelsey Chase.

Passthrough's platform automates fund workflows, focusing on subscription documents and financial crime compliance. Keep reading to explore the intricacies of Passthrough's fundraising journey and the investors backing this innovative platform.

What Is Passthrough?

Passthrough is a FinTech company based in New York, New York, specializing in fund workflow automation. The company focuses on simplifying investor onboarding and ensuring financial crime compliance. Operating within the finance, financial services, fintech, and software industries, Passthrough serves over 2,000 leading funds.

With an employee count ranging from 11 to 50, Passthrough offers services such as electronic subscription documents and data integrations. The company emphasizes security and compliance, holding certifications like SOC 2 Type II and GDPR compliance. Passthrough's platform is designed to benefit fund managers, investors, law firms, and fund administrators.

How Much Funding Has Passthrough Raised?

1. Series A
   • Amount Raised: USD 10,000,000
   • Date: February 2023
   • Lead Investors: Positive Sum, Motley Fool Ventures, Broadhaven Ventures, Company Ventures, Great Oaks VC
   • Valuation at Round: USD 50,000,000
   • Motivation Behind the Round: To accelerate growth, enhance product experience, and develop new features like AML and KYC compliance products and an API integration offering.
2. Seed (2022)
   • Amount Raised: USD 5,000,000
   • Date: February 2022
   • Lead Investors: Positive Sum
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support the initial development and launch of Passthrough's fund workflow automation platform.
3. Seed (2021)
   • Amount Raised: Not publicly disclosed
   • Date: July 2021
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To establish the company and begin developing its core technology for fund workflow automation.

Total Amount Raised: USD 15,000,000. Current Valuation: USD 50,000,000.

Key Investors

• Positive Sum
  • Details: Positive Sum is a venture capital firm led by Patrick O'Shaughnessy and Sam Cates. They focus on solving operational frictions in fund management and improving investor onboarding.
  • Investment Focus Areas: Fintech, fund management, operational efficiency.
  • Notable Investments: Passthrough.
• Motley Fool Ventures
  • Details: Motley Fool Ventures is the venture capital arm of The Motley Fool, a financial and investment advice company. They typically invest in innovative and disruptive companies.
  • Investment Focus Areas: Technology, fintech, consumer services.
  • Notable Investments: Not publicly disclosed.
• Broadhaven Ventures
  • Details: Broadhaven Ventures is a venture capital firm that focuses on financial technology and related sectors. They aim to support companies that are transforming the financial services industry.
  • Investment Focus Areas: Fintech, financial services, technology.
  • Notable Investments: Not publicly disclosed.
• Company Ventures
  • Details: Company Ventures is an early-stage venture capital firm that invests in high-growth potential startups. They provide financial backing and strategic support to their portfolio companies.
  • Investment Focus Areas: Early-stage startups, technology, high-growth potential sectors.
  • Notable Investments: Not publicly disclosed.
• Great Oaks VC
  • Details: Great Oaks VC is a seed and early-stage venture capital firm. They focus on investing in companies across various sectors with a strong potential for growth.
  • Investment Focus Areas: Seed and early-stage investments, technology, various sectors.
  • Notable Investments: Not publicly disclosed.

What's Next for Passthrough?

Passthrough stands at the cusp of significant growth opportunities, driven by the increasing demand for automated fund workflow solutions and compliance products. The company is poised to expand its market presence with new offerings like the AML and KYC compliance tools and an API integration for seamless fund closing. These innovations could position Passthrough as the default platform for fund managers and fintechs, potentially saving weeks of processing time and enhancing user experience.

Future fundraising appears promising, with the potential for additional rounds to support continued growth and product development. The involvement of high-profile investors and strategic angel investors indicates strong interest and potential for future investment. However, Passthrough will need to navigate challenges such as ensuring robust security and compliance, competing with other fintech solutions, and maintaining product quality while scaling rapidly.

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