Fintech SaaS Venture Capital Solution with Pre-IPO Investment Platform

The client was heavily dependent on a conventional documentation system to oversee investments and maintain all necessary paperwork. This outdated method created multiple operational hurdles:

• Step-by-Step Onboarding Process: To onboard startups, clients were required to allocate teams to visit startups and manually collect documentation and compile pitch decks. This was very time-consuming and resource-intensive, thus stalling the entire investment cycle.
   
• Pitch Deck Development: Startups needed to prepare presentation slides to pitch to investors. This process was manual and labor-intensive, and, with possible errors, the quality across an array of pitch decks could vary greatly.
   
• Difficulty of a Single Platform: Information about startups and investors, including distinct board members, leadership teams, and customers, was siloed or scattered across multiple platforms. Without shared data in an organized and secure manner, it created challenges to the coordination of data or efficient data usage.
   
• Exit Process Complexity: Handling exit processes for startups was a challenge, as there was no automated system in place to help investors track their profits and returns. The absence of transparency often led to investors reaching out directly for updates.
   
• Several investment management issues: If a startup is funded through several rounds of investment, the onboarding process will have to be repeated with each round of funding, which can be a waste of time.
   
• Pre-IPO Investment Platform: The client had an idea of developing a pre-IPO investment platform that would permit the startups to interface with their investors, allowing the startups' growth through pre-IPO funding, but did not have the digital support to do so.
   

In short, the client was looking for a scalable, secure, and automated VC management platform to address these issues in order to service both investors and startups more effectively, including automated investment management and investment automation to streamline processes.

Seaflux designed and developed a web-based fintech SaaS VC management platform hosted on AWS to meet the client’s needs. This solution streamlined startup–investor interactions, eliminated redundancies, and introduced automation to key business processes. 

Key features of the solution included:

• Centralized Management of Investors & Startups: 
  The platform serves as a single-source holder of information pertaining to both the startup and investor, including leadership, board, and key customers. It employs a data science algorithm to match startups with the investors that fit best, resulting in likely increased matches.
   
• Automated Financial Calculations: 
  The system automatically generates financial data such as amount invested, profit/loss summaries, payment schedules, and fees for each investor, eliminating the chance of human error and producing considerably more accurate reports.
   
• Investment Intelligence Reports (IIR) for Pitch Deck Automation: 
  Startups do not need to spend hours creating PowerPoint presentations. Rather, a structured step-by-step onboarding form is completed. The system will then generate a professional Pitch Deck automatically with consistent quality and professional design throughout all presentations.
   
• Streamlined Multi-Investment Onboarding:
  The onboarding process was simplified to a one-time effort, which carries forward for any subsequent investments. This eliminated the need to repeat onboarding steps for multiple funding rounds.
   
• Investment Performance Insights:
  The Summary Section allows you to view and monitor all things related to performance, giving you real-time insight into how each investment is doing. It adds greater transparency to the model and strengthens data-led decision-making by both the startups and the investors, supporting investment performance tracking and functioning as a comprehensive investment analytics platform.
   
• Role-Based Access Control:
  The platform was designed with specific user roles:
   
  • Startups can update their details and manage information.
  • Investors can view investments, track returns, and view details about the exit process.
  • Administrators have oversight of all investment activities, investor portfolios, and document verification features, supporting automated investment management.
     
• DocuSign Integration for Electronic Signatures:
  To further facilitate the legal documents process, the sharing of legal documents would be complete and fully integrated with DocuSign. When an investor chooses to make an investment, the legal documents are automatically created, signed electronically by the investor, and securely stored (still available for administrator verification in the platform).
   
• Investor Self-Service Dashboard:
  Investors now have their own investor dashboard where they can view their investments in real-time and won’t have to call or send emails to request updates.

• 47% Reduction in Onboarding Time: By replacing manual pitch deck creation with the automated Investment Intelligence Reports (IIR), the overall onboarding process became nearly twice as fast. Startups could focus more on refining their strategies instead of creating presentations.
   
• 40% Reduction in Miscalculations: Automating profit/loss calculations, disbursement schedules, and fee structures minimized human error. This ensured that both startups and investors could rely on accurate financial data, improving trust in the system.
   
• Improved Transparency & Investor Experience: Investors could independently track investment details, profits, and exit processes through the investor dashboard, creating a more professional and reliable experience with investment performance tracking.
   
• Scalable & Secure System: Built on AWS, the platform was scalable to accommodate growing numbers of startups and investors, while ensuring data confidentiality and compliance with industry-standard security protocols.
   
• Operational Efficiency: With automation reducing manual tasks, the client’s team could focus on strategic growth initiatives instead of repetitive onboarding and paperwork, leveraging automated investment management for better efficiency.