Canoe Intelligence, a fintech provider that aims to automate and improve alternative investment operations for institutional investors, allocators and asset servicing firms, recently completed a round of Series A funding to scale the business. In addition to new capital, the firm credits Hamilton Lane and Nasdaq Ventures, among others, as strategic partners in its move to establish itself as an industry-wide leader.
“We’re building the first public data infrastructure for private markets by consolidating and allowing our clients to introduce millions and millions of PDF documents, and turn those PDF documents into data, which then can be transformed into knowledge for the benefit of running their business,” Seth Brotman, chief executive of Canoe, tells Private Funds CFO.
Canoe’s platform is the private markets equivalent to one provided by Plaid, which was bought in January for $5.3 billion by Visa and focuses on public markets. Brotman says Canoe originated from its partners’ long-time experience in multi-family office – a real estate sector with infamously complex reporting requirements based on a sea of collected information.
LPs and beyond …
The platform, which was founded in 2013 within Portage Partners and spun out in 2017, eliminates the need to extract individual data from PDFs, making it easier to create customized data sets and reports from fund reporting documents. For now, the aim is to make LPs’ lives easier (and, by association, the GPs).
“What I would say is there is a significant amount of data that is not being utilized by the LP community to help drive allocation portfolio management investment decision-making,” Brotman says, since collecting, inputting and analyzing the data is time- and resource-intensive. Canoe’s platform uses machine learning and natural language processing, among other processes, to collect, categorize, validate and deliver report information to “whatever downstream system or port generator that our clients are using.”
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