{"id":1593,"date":"2020-01-31T00:00:00","date_gmt":"2020-01-31T00:00:00","guid":{"rendered":"http:\/\/www-staging.carta.com\/sg\/blog\/building-fund-admin\/"},"modified":"2021-03-05T06:56:29","modified_gmt":"2021-03-05T06:56:29","slug":"building-fund-admin","status":"publish","type":"post","link":"https:\/\/www-staging.carta.com\/sg\/blog\/building-fund-admin\/","title":{"rendered":"Building Fund Admin"},"content":{"rendered":"\r\n

In 2018, Carta entered the fund administration business to fix a broken service industry<\/a>. We believed that there was a better way to administer funds. By marrying service and technology, we set out to create a system of record for fund managers and their investors. In the last year, we\u2019ve hired a world-class service team<\/a>, and our R&D team has had the luxury of learning and observing as we\u2019ve scaled. These learnings empower us to build the software solution to fund administration.\u00a0<\/p>\r\n\r\n\r\n\r\n

Differentiating with real-time metrics\u00a0

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Building Technology Enable Services By Henry Ward
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To start the Fund Admin business, we hired some of the best talent in the industry who brought with a wealth of knowledge about fund accounting. That knowledge provided us\u2014those who build the products\u2014 an incredible opportunity to learn the nuts and bolts of fund administration from the inside.\u00a0<\/p>\r\n\r\n\r\n\r\n

As we built up this business, we prioritized R&D dollars on key differentiators. In venture, fund performance is a lagging indicator. This is further exacerbated by the fact that traditional fund admin shops only report data on a quarterly basis. The first feature we went to market with was Schedule of Investments, <\/em>which allowed fund managers to track every investment\u2019s cost and value in real-time. We\u2019ve continued to expand on these real-time metrics through features like Deal by Deal IRR<\/em> and a fund performance dashboard. These have allowed us to tell a compelling story about how technology could change the face of fund administration and win market share.\u00a0<\/p>\r\n\r\n\r\n\r\n

Learning from the service business\u00a0<\/strong><\/h2>\r\n\r\n\r\n\r\n

As the business gained traction, we focused on scale. By then, we had learned some important things about Fund Administration. First, that this was a relationship business. The accounting and treasury services were table stakes. The relationships our fund admin team fostered with our clients entrenched Carta into the lives of the fund managers. As product builders, we knew we had to create the space for the delivery team to double down on those relationships.\u00a0<\/p>\r\n\r\n\r\n\r\n

We understood things such as:\u00a0<\/p>\r\n\r\n\r\n\r\n