Arch Raises $5.5M to Aggregate Private Market Data

Private Market Investment Platform Arch Secures $5.5 Million in Seed Funding

For over ten years, private markets have witnessed greater capital raising activity than public markets, and this substantial expansion continues unabated.

As private investment gains momentum, innovative tools are being developed to assist investors in navigating these often-complex and inconsistent markets, particularly regarding performance data reporting.

Arch's Aggregated Platform

New York-based Arch has joined this effort, recently announcing a $5.5 million seed funding round for its platform designed to aggregate private investment management data.

Arch positions itself as a private investment equivalent to Fidelity, automating all functions except for direct investment advice, as explained by co-founder and CEO Ryan Eisenman.

The company was founded in early 2018 by Eisenman, alongside Jason Trigg and Joel Stein, both MIT-trained software engineers.

Their initial goal was to consolidate information from diverse private investment managers onto a single platform, addressing the common issue of each manager utilizing their own proprietary data portals.

Data Aggregation and Scalability

“We currently aggregate data from over 5,000 different firms, and possess the capability to manage virtually any firm,” Eisenman stated.

“Our connection process is highly scalable, enabling us to integrate with both established and new firms efficiently.”

The seed funding will be allocated towards expanding the team in operations, partnerships, and engineering.

Arch anticipates doubling its current headcount of 10 employees by the end of the following year.

Expanding Investor Base

This expansion will support the platform’s growth to accommodate a broader range of institutional investors, including foundations, endowments, and pension funds.

Currently, Arch serves just over 100 clients, primarily investment advisors and family offices.

The company intends to add dedicated sales personnel, funded by the new capital, to further accelerate client acquisition.

Onboarding for new firms sharing data with Arch is streamlined, as they provide the same information they routinely share with their clients.

Efficiency and Automation

Arch’s clients have reported a 35% reduction in time spent managing their investments, thanks to the platform’s efficiency in centralizing company updates, tax information, capital calls, and cash flows.

Automation is a key benefit, eliminating the need for manual tasks such as logging into multiple portals, downloading documents, and manually extracting data.

“Investors now receive a single daily email summarizing required actions and providing direct links to relevant documentation,” Eisenman explained.

Integration with Existing Platforms

Arch integrates with wealth management platform Addepar via its transactions API.

It also connects with other industry databases like APX and Black Diamond, enabling clients to consolidate performance reporting across their existing systems.

Growth and Future Outlook

Since its launch in June 2020, Arch has experienced over 1,100% growth in annualized recurring revenue (ARR).

Assets under management have increased by more than 2,300%, reaching $8 billion.

Seed Round Investors

Craft Ventures led the seed round, with participation from notable angel investors.

These include Neil Blumenthal and Dave Gilboa (Warby Parker), Henry Ward (Carta), Jeff Raider (Harry’s), Joey Zwillinger (Allbirds), and Tony Xu (Doordash).

Notably, over 25 existing Arch clients also participated in the round, demonstrating their confidence in the platform.

“We are incredibly proud to have the support of our early clients as investors,” Eisenman said.

“This alignment fosters a collaborative environment where we can all succeed together.”