HERMESNET, which aims to automate a manual legacy in private equity (PE), has acquired 96% (£145,211) of its £150,000 fundraising target from 107 investors.
HERMESNET has secured capital via its crowdfunding campaign being carried out through Crowdcube (with 24 days left in the sale at the time of writing).
HERMESNET is being designed to “automate ESG & financial data collection, portfolio monitoring & reporting using blockchain tech.” With a prototype and 70+ PE funds helping identify product-market fit, they are “raising to launch the product.”
The UK-based company reports a £2,199,761 pre-money valuation, EIS, Equity 6.38%, £18.80 share price.
The company’s management notes:
“On a mission to automate a manual legacy in private equity (PE), HERMESNET is being designed to automate ESG & financial data collection, portfolio monitoring & reporting using blockchain tech. With a prototype & 70+ PE funds helping identify product-market fit, they are raising to launch the product.”
Here are the key business highlights:
- In-house research shows that our product could free up an est 80% of time for value-added tasks
- Product-market fit identified with 70+ PE funds
- Experienced founders: senior roles in field
- Launches of ESG vehicles jumped by almost half in 2020
£62,500 of funds on the progress bar “represent funds raised by the Company prior to launching the campaign,” the update clarified.
The company has already “received these funds, shares have been issued for a portion of this investment, and the Company has indicated up to £25,000 may be spent whilst the pitch is live,” the announcement confirmed. Completion of the Crowdcube raise will “occur on the same material terms and share price,” the update explained.
The firm also noted:
“We founded HERMESNET in 2021 as a response to what we believe is a lack of automation in the fast-growing PE market, predicted to see AUM grow to $5.8tr by 2025. According to KPMG, many PE firms still rely on Excel-based tools for data collection, storage, & analysis. This problem has been exacerbated by the growing need for Environmental Social & Governance (ESG) data collection.”
They added that they aim “to create a solution with the intention of enabling PE firms” to:
- Automate portfolio monitoring activities from ESG & financial data collection, standardizations and reporting.
- Create single source of trust enabling immutable databases on a blockchain.
The firm also mentioned that their software-as-a-service or SaaS business model will “target PE firms including GPs, LPs & Fund of Funds, with a simple model leaving out complex integrations.”
More than half the money that “flowed into EU funds last year went into sustainable products with $1.4tr toward strategies with ESG considerations,” the company revealed.
So far, they have:
- Identified business model & product-market fit with +70 LPs and GPs (who collectively have £20B AUM)
- Completed web app prototype on Ethereum blockchain
- Built a team of entrepreneurs with IT, PE & investment backgrounds from LSE, Calypso Technology & Deutsche bank
- Co-founders with CFA backgrounds, and Tech Nation endorsed CEO as a Global Talent in digital technology.
With this fundraise, the firm plans to launch their product, “grow the team & acquire first clients.”
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