With the UN estimating that $5-7 trillion is needed per year between 2015 and 2030 to achieve a set of SDGs globally, Lausanne-based HackCapital wants to help bridge the funding gap.
How will they do it? According to its founders, by opening up a new route of financing from small ticket accredited investors and removing the traditional complexities associated with fundraising from multiple investors across geographies.
Today, HackCapital has launched out of stealth mode to provide the investment platform to unlock billions in new capital towards private companies working on impact solutions.
Powered by Co-Founders and industry angel investors, Arman Anatürk, Camille Bossell and Emilie Dellecker, HackCapital enables Founders, Fund Managers, and Syndicates across ClimateTech to easily raise capital from their networks for their own raises.
30+ startups and funds have been enabled to pool capital into their round and tap into HackCapital’s investor network including Austria-based Arkeon turning CO2 into functional, climate positive ingredients, US-based Tandem Repeat creating a new generation of self-healing biomaterials, and Israeli Bioraptor, a picks and shovel startup leveraging AI to supercharge deeptech startups.
“HackCapital was created to address the biggest need of our community; mobilising capital towards private companies and funds active in the impact sector. We see ourselves as the enabler of the ecosystem, being the financial platform behind the best founders and fund managers to help them do more of what they do best,” explains Arman Anatürk, CEO and Co-Founder of HackCapital.
Its current capabilities cover roll-up vehicles for founders raising their next round, feeder funds for managers raising their next venture fund and micro vehicles for first time asset managers looking to quickly setup and deploy. These three solutions use automation and digitisation to speed up, and reduce the cost, to raise and deploy meaningful capital for builders and capital allocators working across sustainability and health.
A recurring theme amongst the investments structured on HackCapital is that they’re all made alongside “industry-leading venture firms” such as US-based Siddhi Capital and Germany’s FoodLabs – who were also early investors in the company’s pre-seed round last year.
When asked why they decided to build HackCapital, Co-Founder Emilie responded “Truth is, we built HackCapital for ourselves first. We saw so many great companies come through our doors and present their early visions at our HackSummit events and Meetups which have gone on to become some of the biggest successes in our industry. I wish back then I had the means and the knowledge to write the first checks to these founders – and I’m sure others in our community would have done so too”.
Unlike similar investment tools that structure SPVs (Special Purpose Vehicles) and which have a limitation on the number of investors, HackCapital has built a novel EU-based structure that replaces the need for SPVs altogether, significantly reducing the time and cost to pool capital, and without limitation on the number of investors that can take part.
Camille Bossel, Co-Founder of HackCapital, expressed the significance of establishing a robust legal framework that surpasses industry standards. “The primary objective was to create a structuring platform that offers unparalleled flexibility without compromising security. After careful consideration, Luxembourg was chosen as the ideal location for setting up our investment platform. Luxembourg stands as the second leading fund administration hub globally, following Delaware, and boasts a digital-friendly environment. Moreover, its securitisation regulation we operate under has the potential to revolutionise access to private market impact investments.”