Overview
Passthrough is a leading software company dedicated to innovating the fund management sector by automating key administrative operations such as managing subscription documents, Know Your Customer (KYC), and Anti-Money Laundering (AML) compliance. Based in New York City, New York, Passthrough's platform significantly enhances the efficiency of investor onboarding, allowing clients to prioritize core investment activities over traditional paperwork ([source](https://passthrough.com/)).
Leadership and Key Personnel
The company’s forward-thinking approach is driven by its co-founders Tim Flannery (CEO), Ben Doran (COO), and Alex Laplante (CTO), who each bring a wealth of experience from previous leadership roles at Carta Investors Services and other significant positions within the technology and compliance sectors. Key personnel also include:
- Julius Leiman-Carbia (Chief Legal & Compliance Officer)
- Garrett Butler (Head of Client Operations)
- Elan Gefen (Product Manager)
These leaders spearhead an operations team adept in financial crime prevention, legal affairs, and client support, underpinning Passthrough's commitment to comprehensive fund administration and compliance ([source](https://www.linkedin.com/company/passthroughinc)).
Products and Services
Central to Passthrough’s offerings are:
- Electronic Subscription Documents: Streamlining document distribution, ensuring accuracy and completeness.
- KYC/AML Solutions: Advanced automated screening and beneficial owner mapping that adhere to rigorous regulatory requirements.
- AML Compliance Officer (AMLCO): An outsourced service ensuring compliance with SEC standards ([source](https://passthrough.com/about)).
These integrated solutions cater to fund managers, law firms, and administrators, optimizing compliance and documentation workflows.
Funding and Growth
Passthrough has successfully navigated several funding rounds, notably securing a $10 million Series A round led by Positive Sum with Motley Fool Ventures in February 2023. This financial backing is poised to support workforce expansion and enhance service and product offerings ([source](https://www.businesswire.com/news/home/20230201005014/en/Passthrough-Raises-10M-Series-A-To-Provide-Investors-With-Instant-Check-out-Experience-for-Fund-Closing)).
Financial and Employee Data
- Estimated Annual Revenue: $6.1 million
- Employee Count: 38
- Revenue Per Employee: $159,600
- Total Funding: $15 million
- Employee Growth: 27% increase over the past year
Security and Compliance
Security is foundational to Passthrough’s operations, with the company holding AICPA SOC 2 Compliant status and employing sophisticated encryption and authentication technologies. Regular penetration testing and robust internal controls further solidify their commitment to cybersecurity ([source](https://passthrough.com/security)).
Industry Impact and Partnerships
Strategic partnerships, such as those with Goodwin, reinforce Passthrough’s capacity to expedite investor onboarding. Trusted by over 2,000 leading funds, Passthrough’s solutions fortify its position as a formidable entity within the investment management landscape.
Passthrough's market strategy focuses on leveraging cutting-edge software solutions to streamline private fund subscriptions. This technological edge enables them to address inefficiencies inherent in manual and traditional fund management processes, significantly enhancing compliance and productivity for private investors and fund managers.
Competitor Profiling
Passthrough's position in the fintech space involves competition with several notable entities:
1. Vestlane - Direct competitor in subscription software for private funds.
2. IDR - Provides comparable fintech solutions.
3. Anduin - Focuses on automated investment workflows.
4. H Stern - Listed due to overlapping financial products despite its jewelry sector focus.
5. BPAS - Larger revenue ($90 million) offering retirement and fund services.
6. The Financial Guys - Smaller entity ($5.7 million in revenue), offering wealth management services.
7. Bessemer Trust - Revenue of $449.5 million, leading in multifamily office and wealth management.
8. TRAFiX - Offers competitive trading and financial services solutions.
Passthrough's competitive strategy emphasizes their unique niche focus within the financial technology sector, positioning them as leaders in automating and simplifying compliance and fund processes. This specialization provides a distinct competitive edge, allowing them to cater to specific market inefficiencies and carve out a significant role in the financial services landscape.
