Private markets have seen a significant increase in Assets under Management (AUM), reaching a substantial $11.7 trillion in 2023. This number is expected to double within the next five years. However, despite its considerable size and importance, the processes within these markets remain predominantly manual and time-consuming, often taking weeks, or even months to complete.
Enter Globacap, a London-based fintech startup with a mission to transform and modernize the private markets by automating and digitizing various aspects, ranging from issuance and administration to the transfer and settlement of securities.
In a promising development, Globacap announced today it has secured $21 million in Series B funding, further propelling its efforts to digitize and automate private capital markets. The news comes at a time when fundraising has become more challenging due to market turbulence and uncertainties.
This funding round garnered support from notable investors, including capital markets giants such as Moore Strategic Ventures, LLC, Cboe Global Markets, Inc., and the Johannesburg Stock Exchange (JSE). Additionally, GABI Ventures and the esteemed Asia-focused investment firm, QBN Capital, have joined in.
Globacap’s journey has been marked by rapid growth since its inception. the fintech startup successfully completed over $350 million in secondary transactions and is currently administering an impressive $14 billion in private securities. The utilization of their white-label product by the JSE and Instinet has been a significant success.
Founded by CEO Myles Milston and COO Alex Green, Globacap is aiming to unleash the potential of private capital markets through digital transformation and automation. Its software-as-a-service offers workflow automation, bringing efficiencies similar to those seen in public markets to the private sector. This streamlines time-consuming processes such as issuance, administration, and the transfer and settlement of securities, effectively reducing costs and enhancing efficiency for market intermediaries.
With 15 white-label solutions for global institutions and an ecosystem that has managed over 70 private placements, as well as $350 million in secondary transactions, Globacap’s automated settlement processes have firmly established them as a key player in the field, currently overseeing $14 billion in private securities.
The injection of fresh funding will support the company’s marketing and sales efforts, as well as expansion into new geographic regions. Moreover, they plan to invest in product development to expand their customer base and build upon the success of their white-label product, which has been instrumental in automating various processes throughout private capital markets and is adopted by leading intermediaries, including the JSE and Instinet.
“The Globacap ecosystem is a vital enabler to our JSE Private Placements business, and our joint relationship has equipped the JSE to drive our diversification strategy in supporting capital formation in private markets. As the JSE, we support Globacap’s next growth phase and we look forward to continued growth that will produce innovative and implementable solutions to address the ever-evolving need of customers,” says Valdene Reddy, Director of Capital Markets, JSE.
In a statement, CEO Myles Milston said: “Private capital markets are rapidly growing, but their opaque nature is holding them back from reaching their true potential. We are bringing public markets-like infrastructure to private capital markets to improve access, boost liquidity, and remove administrative burdens. Securing considerable backing from world-leading investors during a time of market turbulence, risk aversion, and uncertainty is a powerful validation of our mission to transform and drive efficiency in private capital markets. We’re in a unique position to grow through the current market turmoil, leading with strength as market conditions eventually improve.”
Alex Green, Globacap Co-founder and CCO adds: “The completion of our Series B enables us to firmly accelerate our global scaling journey. In recent weeks, we have made experienced hires including new COO, Joanna Tibbitt, and new CMO, Suzanne McLaughlin, and added three new hires to our sales team. We have a strong team, market validation from key clients across exchange groups, securities firms, private equity, and other asset managers, and now validation from our investors, who are some of the world’s largest and most respected institutions.”
In essence, Globacap is a dynamic fintech company on the rise, having secured over $30 million in funding. Their software has facilitated more than 70 private placements, executed over $350 million in secondary liquidity with automated settlement processes, and currently administers an impressive $14 billion in private securities.