The financial landscape is witnessing a notable shift with the launch of Roundtable’s micro fund-as-a-service product. This new offering is designed to streamline the process for investors wishing to establish their own venture capital (VC) funds. With a focus on ease and speed, the platform aims to attract a diverse range of investors, including business angels, VC partners, and alumni networks. This move is expected to democratize the investment process by lowering entry barriers and simplifying administration.
Roundtable, a registered EuVECA Manager in Luxembourg, was founded to facilitate capital raising via a platform for business angels and investor communities. Since its inception, the company has assisted in raising over €250 million through 450 deals in the past year alone. Roundtable’s new product further extends its mission by enabling investors to create micro funds quickly and efficiently. The platform handles fund administration, audits, and reporting, significantly reducing the complexities and costs traditionally associated with launching a VC fund.
Launch a Micro Fund in Hours
Roundtable’s micro fund product significantly accelerates the fund setup process, allowing investors to initiate a fund in mere hours. Traditionally, launching a VC fund requires a minimum capital of €50-100 million, along with navigating complex legal frameworks and onboarding Limited Partners (LPs). Roundtable mitigates these challenges by offering a standardized, all-inclusive service, thereby reducing the minimum capital requirement to a few million euros. This streamlined approach not only saves time but also decreases annual operational costs.
Micro Fund Investment Deals Are on the Rise
Micro funds have gained substantial traction, particularly in the US, where they comprised about 20% of all seed investments in 2021. Over the past decade, the number of micro VC deals surged by 219%. This trend is attracting influential business angels, VC partners, and alumni networks, who are keen to leverage the agility and hands-on support that micro funds offer. Roundtable is actively supporting several micro funds targeting first closings between €10 million and €100 million, including Intuition.vc—a €15 million early-stage fund focused on consumer and culture startups.
Micro Fund Insights and Future Plans
Roundtable’s CEO and co-founder, Evan Testa, emphasizes the agility and hands-on support that micro funds provide to founders. These smaller funds are gaining popularity in Europe, mirroring transformations seen in the US VC market. Roundtable plans to expand its services internationally and diversify investment offerings into real estate and private equity, further broadening its impact on the investment landscape.
Key Takeaways
- Roundtable’s service allows fast setup of micro VC funds.
- Micro funds have lower capital requirements and operational costs.
- Several new micro funds are targeting substantial first closings.
The introduction of Roundtable’s micro fund-as-a-service product marks a significant development in the European investment landscape. By lowering entry barriers and simplifying administrative processes, the platform democratizes venture capital opportunities for a broader range of investors. The agility and personalized support provided by micro funds can potentially drive more innovation and growth within the startup ecosystem. As Roundtable expands internationally and diversifies its investment options, it is poised to make a substantial impact on how venture capital is structured and administered globally.
