A New York-based private investment management platform with a who's who of backers is celebrating a funding round that was good for eight figures.
On Thursday, wealthtech startup Arch announced that it has raised $20 million in Series A funding in a round led by Menlo Ventures, with participation from existing investors Craft Ventures and Quiet Capital.
The funding round also welcomed new investors
Arch, which launched publicly in June 2020, is focused on modernizing K-1 workflows, automating operations and simplifying reporting for financial advisors. Its client- and advisor-facing platform aggregates data and documents across every investment and delivers reporting-ready data directly to everyone who is part of the process.
Arch's portal currently tracks tens of thousands of positions, encompassing more than $60 billion in investments
Company officials said the new capital will allow them to expand their team. It will also support additional development with a goal of streamlining the repetitive manual work traditionally associated with investing in and managing alternative investments.
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"Actionable, insightful data is the foundation of smart investment decisions," Ryan Eisenman, co-founder and CEO at Arch, said in a statement. "That's why we built Arch. To meet the complex needs of private investors, financial advisors, banks and institutions, equipping them with a platform to efficiently manage and understand their private investments.
"We're extremely thankful to our investors and clients for their support as we continue to create solutions that meet the needs of our clients and the investment community."
According to the company, Arch provides tools for users to review and efficiently manage updates within their portfolios, including new investment opportunities, capital calls, distributions and more. Additionally, Arch collects and aggregates tax documents such as K-1s as they are distributed, allowing users to locate these items from a centralized source when tax season arrives.
The founders of Altruist, Aduro Advisors, Equi, Sydecar and Vanilla have also invested in Arch, along with industry thought leaders Gary Cohn, Scott Prince and Marc Spilker. The latest capital raise follows a 2021 seed funding round that generated $5.5 million, pushing the company's total haul to more than $25 million.
"Arch is a powerful fintech solution that empowers advisors to manage their alternatives allocation more efficiently," Lenny Chang, co-founder at Focus Financial Partners, said in a statement. "As private credit, private equity, real estate and venture capital continue to capture the interest of high-net-worth investors, independent advisors require tools that give them greater scale and flexibility in managing a comprehensive portfolio that includes alternatives. I believe Arch's product suite is poised to play an important and integral role in the alternatives ecosystem."
