The new onramp to venture capital brings process and certainty to venture capital investing, helping thousands of investors close over $350M in deals prior to public launch
Sydecar announced that they have raised $8.3M in seed investment funding. The round was led by Deciens Capital, with participation from Pipeline Capital Partners, Anthemis Group, and Hustle Fund VC.
Additional angel investors and strategic operators also participated in the round including Mike Vaughan, (Former COO at Venmo); Shai Goldman (XIR Lead at Brex); Nik Milanovic (General Partner at The Fintech Fund); Rohini Pandhi (Product Lead at Square); Daniel Khan (Open Finance Lead at Plaid); Samir Kaji (CEO & Founder of Allocate); Karim Bhalwani (Head of BD & Sales at Remitly); Anil D. Aggarwal (Founder & CEO at Fintech Meetup); Winter Mead (CEO & Managing Partner at Coolwater Capital); Jonathan Weiner (Founder of Money 2020); Maia Bittner (Voice of the Member at Chime); Aaron Frank (startup advisor); and Hayden Simmons (Founder at Rally Cap Ventures).
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Sydecar is pioneering a standards-driven approach to venture investing. By doing so, they aim to reduce the regulatory burden on individual investors, increase transparency, and offer liquidity with a fraction of the hassle. Their platform handles back-office operations for emerging venture investors, automating banking, compliance, contracts, and reporting in order to remove the headache, cost, and uncertainty of back-office operations while establishing Sydecar as a bedrock for the next iteration of VC investing. Ultimately, this streamlines the entire ecosystem by removing friction from the deal-making process. Sydecar has already supported deals from $25k to $100M for thousands of investors.
“After launching a venture fund with my co-founder David in 2018, I became aware of how painfully clunky and unnecessarily complex the fund formation process can be,” says Nik Talreja, Founder & CEO of Sydecar. “There was an immense amount of friction between putting capital to work, establishing relationships, and backing founders.”
“We created Sydecar to be the product we wished we had when we were starting out,” says co-Founder and Sydecar’s CBO, David Meister. “Our goal is to help anyone invest in the entrepreneurs they believe in, without needing a personal team of lawyers and accountants.”
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Sydecar’s platform allows venture investors to keep up with the pace of the market, launching investment vehicles in minutes rather than days or weeks, while helping them navigate the many regulatory challenges of venture investing. To date, they have helped thousands of investors close over $350M in deals, both through direct deals on their platform and through partnerships with companies like Stonks and Allocate.
“At Deciens, we believe in building the next generation of financial services,” says Daniel Kimerling, Founder & Managing Partner at Deciens Capital. “Sydecar sits at the intersection of financial, legal, and technological innovation. With their product-first approach comes the ability to push the boundaries of the possibility of private investment through thoughtfully architected investment structures. We’re excited to not only support them as investors but to see how their product changes how we operate and work ourselves as a VC.”
This latest round of funding will be used to hire multiple new team members across product and engineering, customer experience, marketing, and operations. The team’s growth will be critical in expanding Sydecar’s product offerings, including an upcoming enterprise integration.
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