Financial advisory and management services startup Sydecar raises $8.3M

Financial advisory and management services startup Sydecar raises $8.3M

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Financial advisory and management services startup Sydecar Inc. has raised $8.3 million in new funding to hire more people across engineering, customer experience, marketing and operations, with an aim to expand its product offerings.

Deciens Capital led the seed round announced today, with Pipeline Capital Partners, Anthemis Group, Hustle Fund VC and various angel investors also participating.

Founded in 2021, Sydecar offers tools designed to remove the headache of organizing private investments. The company pitches itself as allowing users to “make deals, not spreadsheets.”

Sydecar says its platform brings a standards-driven approach to venture investing. The service aims to reduce the regulatory burden on individual investors, increase transparency and offer liquidity with a fraction of the hassle. Its platform handles back-office operations for emerging venture investors, automating banking, compliance, contracts and reporting in order to remove the headache, cost and uncertainty of back-office operations.

The company’s service streamlines the entire venture capital ecosystem by removing friction from the deal-making process, according to the company. Features include the ability to create a fund or special purpose vehicle with support for customized investment agreements, entity formation, instant banking and data rooms.

For investors, the platform offers SPV and syndicate administration, fund accounting at taxes, Form D and Blue Sky filings and distributions. Sydecar also offers investor onboarding, Know Your Customer and anti-money-laundering checks, capital table management and accreditation checks.

Sydecar’s platform allows venture investors to keep up with the market, launching investment vehicles in minutes rather than days or weeks, while helping users navigate the many regulatory challenges of venture investing. Although fairly young as a startup itself, Sydecar has already supported deals from $25,000 to $100 million for thousands of investors, claiming users have completed $350 million in deals. They includes direct deals on its platform and through partnerships with companies including Stonks Inc. and Allocate Holding Inc.

“After launching a venture fund with my co-founder David in 2018, I became aware of how painfully clunky and unnecessarily complex the fund formation process can be,” Nik Talreja, co-founder and chief executive officer of Sydecar, said in a statement. “There was an immense amount of friction between putting capital to work, establishing relationships and backing founders.”

Image: Sydecar

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