Business

Late-stage investment platform VELVT raises BRL 17 million from GFC

VELVT's idea is for late-stage venture capital investors to sell and buy shares through a private equity fractional share platform

Photo: Courtesy/Velvt
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  • The company will initially work with several digital banks, wealth managers, and family offices;
  • VELVT’s business model is largely based on remuneration on top of the success of the platform’s investments.

Fintech startup VELVT has raised a BRL 17 million Seed round to bring a platform that promises liquidity to shareholders of pre-IPO stage startups. The funding was led by GFC (Global Founders Capital) and had participation from Headline, Yolo Ventures, Armyn Capital, and angels and co-founders from big companies like Nubank, Hashdex, Nomad, Favo, Locus, Carbon.

The funds will be used to drive the launch of VELVT’s platform in the Brazilian market, scheduled for the second quarter of 2022.

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VELVT’s idea is that late-stage venture capitalists can sell and buy shares through a private equity fractionalization platform. The company will initially work with some digital banks, wealth managers, and family offices to offer the platform via API in a B2B2C model.

“In mature markets, such as the US or Europe, it is easier to access this type of application in pre-IPO companies. We want this to become a reality in Brazil as well, being the connection between those who manage the investment portfolios and portfolios, the tech companies, and their shareholders,” say VELVT co-founders Edouard de Montmort and Carlos Naupari in a press release.

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VELVT’s business model is largely based on remuneration on top of the success of the platform’s investments. The company charges a performance percentage on top of the amount invested and resource management.

VELVT also plans a “Secondary-as-a-Service” product to organize the secondary share offering process. “We see many friends who are part of the founding teams of late-stage companies that are rich on paper but lack liquidity and are at a point in their dreams. VELVT comes to the market to help turn those dreams into reality,” says Montmort.

The idea is for VELVT to place BRL 1 billion in late-stage venture capital equity offerings by the end of 2022. The startup has offices in São Paulo and Miami, in the United States.

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