Arch, the investment platform for private investment communications in one portal, with one login, today announces 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. Since launching publicly in June 2020, Arch has grown annualized recurring revenue over 1,100%, and the private assets managed on Arch have experienced over 2,300% growth. On average, investors using Arch report spending 35% less time managing their investments
Private equity is a dynamic and rapidly growing market. Private markets globally outperform public market equivalents with global net returns of over 14%, and total assets under management across private markets reached an all-time high of $7.4 trillion in 2020. While new technologies make investing in private market alternatives more accessible than ever before, managing these investments has remained a manual, and time intensive process. As opposed to the public market where there are platforms like Fidelity, Charles Schwab, Wealthfront, E*TRADE, Robinhood and others, in private markets there are structural barriers, including software systems and individual portals for each investment that cause investment managers to spend excessive time manually accessing investment information.
With Arch, investors are able to manage their investments in one place, at 5x the speed they worked before. 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. 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.
Jon Porter, CEO of Three Bell Capital and current Arch customer shared, “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.”
With this new capital, Arch will expand its platform of financial management tools to give users more visibility and control of their money than ever before. The company plans to rapidly grow their 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.
Jeff Fluhr, lead investor in Arch’s Seed Round, co-founder and General Partner at Craft Ventures shared, “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.”
“Arch brings unprecedented speed and convenience to private investment management, a space that has remained largely nascent despite the massive size of the opportunity,” shared Ryan Eisenman, co-founder and CEO of Arch, who co-founded the company with MIT software engineers Joel Stein and Jason Trigg. “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.”
About Arch
Arch is the Digital Admin for private investments, the all-in-one investment platform that manages all private investment communications in one portal, with one login. With Arch, investors are able to manage their investments in one place, accessing information 5x faster. Arch connects with the back office for each private investment, receiving all documents and communications in a secure, aggregated platform. Arch’s automated system collects K-1s, manages cash flows, and provides reporting ready data, removing the need to access 3rd party portals. The platform collects tax documents across every investment, organizing critical information and delivering these documents automatically to Accountants and Tax Advisors.
Visit archlabs.com or contact founders@archlabs.com for more information.
