Globacap, a current front-runner in capital markets technology, has raised $21m in a recent investment haul.
The firm has recently finalised a substantial $21m Series B funding round. This latest financial injection came from renowned names in the capital market sphere, including Moore Strategic Ventures, LLC, Cboe Global Markets, Inc., the Johannesburg Stock Exchange (JSE), GABI Ventures, and the eminent Asia-focused investment outfit, QBN Capital.
Private markets have witnessed an astonishing growth trajectory. The total assets under management (AUM) in private markets touched an astounding $11.7tn in 2023, exhibiting an impressive annual growth of nearly 20% since 2017. Projections indicate this figure is poised to double in the next half-decade. However, the operations within this burgeoning market sector remain plagued with inefficiencies. Transactions can often drag on, taking weeks to months due to their manual and time-consuming nature.
Globacap is on a mission to revolutionise this. The company seeks to harness the full potential of the private capital markets by instigating digitisation and automation. Their groundbreaking workflow automation software-as-a-service endeavours to impart public market efficiencies to the private sector. This software significantly expedites various prolonged processes, ranging from issuance and ongoing administration to transferability and final settlement of securities. This not only cuts down costs but also optimises efficiency for market intermediaries.
Since its inception six years ago, Globacap has been on a meteoric rise. The firm currently boasts 15 whitelabels for global powerhouses and has an ecosystem that has efficiently managed over 70 private placements. This ecosystem has also successfully overseen more than $350m in secondary transactions of private assets, incorporating automated settlements. Presently, Globacap has administrative duties over $14bn worth of private securities.
With the fresh funds in hand, Globacap has laid out ambitious plans. The company is geared up to intensify its marketing and sales activities, make inroads into new regions, and plough investment into refining its product to amass a larger customer base. Furthermore, they’re eager to build upon the resounding success of their whitelabel product. This product, which streamlines processes in the private capital markets, has gained adoption from significant intermediaries like the JSE and Instinet.
JSE’s Director of Capital Markets, Valdene Reddy, said, “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. 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.”
Globacap Co-Founder and CEO Myles Milston remarked, “Private capital markets are rapidly growing, but their opaque nature is holding them back from reaching their true potential. We are bringing public markets-like infrastructure to private capital markets to improve access, boost liquidity and remove administrative burdens. Securing considerable backing from world-leading investors during a time of market turbulence, risk aversion and uncertainty is powerful validation of our mission to transform and drive efficiency in private capital markets. We’re in a unique position to grow through the current market turmoil, leading with strength as market conditions eventually improve.”
Alex Green, Globacap Co-founder and CCO, added, “The completion of our Series B enables us to firmly accelerate our global scaling journey. In recent weeks, we have made experienced hires including new COO, Joanna Tibbitt, new CMO, Suzanne McLaughlin, and added three new hires to our sales team. 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.”
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