How Multiple Capital enhanced operational efficiency with Vestlane

Multiple Capital is a European fund of funds that invests in venture capital funds rather than directly in companies. This approach allows them to support VC funds that invest in innovative startups.

Founder Ertan Can provides insights into the evolution of venture capital, highlighting the shift towards specialization and democratization.

"The market has seen a shift towards specialization and democratization. More niche funds are emerging, and it's becoming easier for new funds to start. This trend is beneficial as it brings diverse opportunities and expertise to the market."

Ertan also discusses the differences between German and Luxembourg fund structures.

The biggest difference between Germany and Luxembourg is that you don't have to register LPs in the commercial register in Luxembourg, which simplifies the onboarding process. In Germany, collecting and managing all the necessary documents can be very time-consuming and resource-intensive.

Technology plays a crucial role in Multiple Capital's operations. Ertan explains, "We're using a lot of technology for various tasks, from email and CRM tools to due diligence and project management software. This allows us to streamline our operations and focus more on our core mission of identifying and investing in high-potential venture funds."

Looking to the future, Ertan emphasizes the importance of tech-driven service providers. "There is a huge opportunity for tech-driven service providers to streamline regulatory and compliance processes. This would make managing a fund more cost-effective and efficient, allowing fund managers to focus on investment activities rather than administrative tasks."

To further enhance their efficiency, Multiple Capital partnered with Vestlane, a private market platform for fund managers and investors to build compliant, evergreen partnerships.

Vestlane offered features like automated data entry, centralized communication channels, and streamlined compliance systems for KYC and AML, reducing manual effort and errors.

Ertan highlights the impact of Vestlane on their operations:

Onboarding LPs has always been resource-intensive, especially in Europe. With Vestlane, we've significantly reduced the time and effort involved, allowing us to focus more on finding and investing in high-potential venture funds.

He adds,

We had two closings with the Luxembourg Fund, each completed within three to four weeks, including sending out links and collecting signatures. This efficiency, with 18 LPs in one closing and 12 in the other, was impressive.

Multiple Capital's partnership with Vestlane shows how digital tools can enhance operational efficiency and investor relations in venture capital management.

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