UK-based Globacap, a capital markets technology company, announced that it has raised $21M (€19.93M) in a Series B funding round of funding.
The company says that the new funds will support the firm’s mission to digitise and automate private capital markets worldwide.
With the new funding, the capital markets technology company also aims to boost marketing and sales activities, expand its operations in new regions, enhance its product development, and grow its customer base. Previously, it has secured over $30M (€28.46M) in funding.
Notable investors such as Moore Strategic Ventures, Cboe Global Markets, the Johannesburg Stock Exchange (JSE), GABI Ventures, and Asia-focused investment firm QBN Capital participated in the funding round.
“The completion of our Series B enables us to firmly accelerate our global scaling journey,” says Alex Green, Globacap co-founder and CCO.
“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,” Green adds.
Globacap’s mission
According to data and insights company Preqin, private market assets under management (AUM) reached $11.7T in 2023, growing at an annual rate of approximately 20 per cent since 2017. It’s projected to nearly double in the next five years. Despite its significant size and growth, transactions in this market remain slow, manual, and time-consuming, often spanning weeks or months.
“Private capital markets are rapidly growing, but their opaque nature is holding them back from reaching their true potential,” says Myles Milston, Globacap co-founder and CEO.
“We are bringing public markets-like infrastructure to private capital markets to improve access, boost liquidity and remove administrative burdens,” adds Milston.
Globacap was established in 2017 to answer this problem, delivering public markets-like efficiency to private markets. Financial institutions, including securities exchanges, securities firms, private banks, and asset managers, can utilise Globacap’s platform to accelerate their commercial activities.
Its efforts to streamline private markets can reduce barriers in the market, enhance investor access, and boost transaction frequency and liquidity, thereby unlocking dormant economic growth potential.
Clients and users
The company will also use the funding to build upon the success of its white-label SaaS solution, which streamlines processes in private capital markets.
The software’s digital workflows enable financial institutions to expedite private market activities and reduce operational expenses. It is used by key intermediaries like 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,” says Valdene Reddy, JSE’s director of capital 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,” adds Reddy
In addition to its work with JSE, Globacap’s software has facilitated over 70 private placements, handled more than $350M (€332M) in secondary liquidity with automated settlement, and administered over $14B (€13.29B) worth of private securities.
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