FinTech Collective Invests in bunch

bunch was founded in 2021 with the vision to build the operating system for private markets, starting with venture capital. This passion was born out of real pain points that the founders encountered in their previous venture roles navigating underwhelming fund admin solutions. They saw firsthand that the venture backed landscape of fund admins was not yet able to replace the incumbents that dominate the vast majority of the European market. Even those newer, well regarded growth stage players remained people-first organizations supported by technology, with a focus on specific portions of the operational scope of fund admin.

bunch’s ability to automate fund administration services is a truly novel advancement. Products encompass tasks including fund incorporation, LP onboarding, tax registration, legal framework guidance, bank account set up, capital call and distribution process automation, integrated banking solutions, compliant digital signing, fund reporting, portfolio reporting, data room management, data consolidation, and financial statement generation.

Reinforcing the opportunity locked up in the status quo, legacy providers have an average founding year of 1979 and still collectively generate more than $15 billion in revenue. bunch has already made significant strides into the market, establishing a presence in three countries serving a growing number of clients with increasingly greater AUMs. Their sophisticated platform positions them well to capture this opportunity and redefine the way in which venture capital, private equity, fund of funds, real estate, debt, and infrastructure investors interact with their private market investments and investors. bunch’s ambition extends well beyond their German HQ to their growing European base, and further down the line, to major markets including the US.

We first met bunch co-founders Levent Altunel and Enrico Ohnemüller more than two years ago. Since then we’ve been impressed with the focus and dedication with which they’ve built bunch to serve not only the long tail of SPVs, but an increasingly comprehensive and formidable batch of private market investors. Their complementary skills create a strong foundation to fuel bunch's global growth trajectory, with a shared determination to build a category-defining business.

FinTech Collective has been looking at solutions in the private market infrastructure space for the past decade. Fund admin functions today still suffer from many of the same pain points as they did 10 years ago, despite a multitude of providers offering both tech and human-enabled solutions. Most attempts to compete cover only thin layers of the market - requiring the use of multiple different platforms - while the more comprehensive offerings are still heavily reliant on human resources and outdated technology.

With the advent of AI applications available to build more seamless, automated workflows than ever before, the time is now for bunch. Advanced technology can offer a level of precision that private markets investors can truly rely on. bunch aligns perfectly with our thesis by addressing a critical gap in the private market fund administration space, as we believe they can create a step-change in an industry that has only ever known incremental advancements.

This investment marks FinTech Collective’s first in Germany since the opening of our London office, and we are excited to work closely with bunch on their mission to transform private market infrastructure.