Globacap has announced raising $21 million in Series B funding backed by Cboe. Other investors include Moore Strategic Ventures, LLC, the Johannesburg Stock Exchange (JSE), as well as GABI Ventures and QBN Capital. Globacap is another entrant in the private securities market, seeking to consolidate and rationalize secondary transactions globally.
Globacap notes that private markets are enormous, with a total AUM of over $22 trillion. This amount has been growing at around 20% per year since 2017. Globacap expects this amount to double over the next five years. At the same time, the market is highly analog and in need of a digital update.
Globacap provides workflow automation software-as-a-service that is described as bringing public markets-like efficiency to private markets. This includes primary issuance and ongoing administration, through to transferability and settlement of securities, reducing costs and improving efficiency for market intermediaries.
Globacap reports that it is currently working with 15 white labels for global institutions and has now managed over 70 private placements and completed over $350 million in secondary transactions of private assets, with automated settlement, and currently administers $14 billion of private securities.
Myles Milston, Globacap Co-Founder and CEO, says private markets are growing rapidly but the current status of technology is holding them back from their true potential. They aim 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.”
Globacap Co-founder and CCO Alex Green, says the funding will accelerate their global scaling journey.