Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 12:03pm ET

Global investment in financial technology—also known as fintech—is booming.

In 2008, approximately $930 million was put into fintech companies, according to Accenture. By 2013, that figure had tripled to $2.97 billion. Fast forward one year to 2014 and experts put estimates for fintech investment anywhere between $6 billion and $18 billion.

Regardless of the exact figure, money pouring into fintech firms is leading to the creation of countless exciting and innovative technologies. In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry.

This week, we take a look at Fundbase.

Name: Fundbase
Location: Zurich (Switzerland), New York (USA), Bratislava (Slovakia)
Website: www.fundbase.com
Twitter: @goFundbase
Sector: Institutional Investment, Alternative Investments
Year formed: 2013
No. of employees: 20

Stage: Preparing for Series A after successful Seed/Angel rounds in 2013 and 2014

About: Fundbase is the online platform for easy global hedge fund access. It’s the Airbnb for hedge funds.

Tell us a bit about your company and what it does?

At Fundbase we built a global platform to revolutionize the most complex areas of asset management. It allows the global alternative investor community to make step changes in efficiency and investment performance. Based on technology that is superior to most in the financial industry, Fundbase will act as a blueprint for the future of finance. We want to build solutions to the existing problems that are scalable, performant, and elegant, and we're looking for talented people to help us do just that.

Market complexities are reduced by cutting-edge technology. We strive to unlock hidden performance in a fast growing US$3 trillion market and we give access to a global network of professional peers. A complex market made simple.

How is Fundbase different than other companies in the same space?

Fundbase’s unique value proposition is in combining its globally active hedge-fund platform based on cutting-edge technology with its regulated service offering. With our specialization in hedge funds, access to investors via our platform, and our offering that meets all regulatory requirements, we, other than U.S.-driven platforms, are also able to sustainably open up Swiss and European markets for the world’s most innovative hedge funds.

What is your revenue model? How will the company make money?

We installed a freemium model to offer basic yet valuable access and features for free to both sides of the industry. Funds can get listed and exposed to qualified investors for free while investors get free access to a global source of high-quality hedge fund information.

The beef comes through match making: Fundbase matches investor and investment. We facilitate the investment process, become part of the flow of funds, and will participate in performance fees. Furthermore, Fundbase sells efficiencies from technology to buy-side businesses and offers regulated fund services to act as representative and distributor of foreign collective investment schemes in Switzerland.

How big is the opportunity? Who is your target market?

Gigantic! Alternatives such as hedge funds are the asset class of the next decade – and yet unbelievably inefficient and costly to access. We are about to change this. Our global market place caters to all buy-side (family offices, pension funds, banks, (U)HNWI, etc.) and sell-side (fund and asset managers) players in the alternative investment industry as well as their advisors and service providers.

Why are you and your team capable of succeeding?

We're out to build an engineering team in Europe and the U.S. that can produce what teams 20 times our size can do. At Fundbase we ingrain the product into our customers’ processes and radically innovate the way asset management will work in the future. We love what we're building and so do our clients. We talk about the emerging product non-stop and how we can achieve the desired revolution even faster. We love working on challenging problems and working with smart engineers that can help us grow individually too. As a tech company, we value engineering, it is the key to innovation in our sluggish target market.

We will succeed because with have the right team mix of people (as managers, employees, advisors, and investors) with deep and proven market knowledge and a world class technology team living world class engineering processes. And we all have the absolute will to succeed.

What is your company’s next milestone?

On our roadmap until mid of 2015 we have two major goals to a) achieve break even with our current product offering and b) to close the functional gap and make funds investible through our platform. Those achievements will be the baseline for a growth financing in 2015.

Can you tell us one unusual fact about your company an/or its culture?

As a company in finance industry, we have quite an unusual tradition for our Swiss Christmas dinner. While most companies (in Switzerland) celebrate their dinners at posh city locations and fancy restaurants, we assemble at the foot of a snowy mountain at Lake Zurich and put on snowshoes. After a straining 45 minute walk straight up the white powdered hill we arrive at a secluded, small, and simple lodge where the most adorable lady and her children prepare one of the best cheese fondues I know.

If you would like your fintech firm profiled, please email editorial@finalternatives.com


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