Artesian PROVIDES FUND ADMINISTRATION AS A SERVICE (FAaaS) TO VCs, accelerators, family offices, corporates and institutions.
We LEVERAGE our intellectual property and industry knowledge, funds administration expertise, data gathering and analysis capabilities TO BUILD Australia’s largest VC funds administration and support services business.
Artesian is established and licensed in Australia to conduct all relevant funds administration activities for VC fund managers. Artesian currently manages 8 ESVCLPs and 2 AFOFs.
Artesian's FAaaS platform is a turnkey solution providing outsourced fund administration activities, saving time, money and resources.
VC Funds Administration requires a team of professional with specialised skills including :
Financial Services License
Artesian's FAaaS allows organisations looking to establish institutional grade fund administration capabilities a faster entry to market with real efficiency and scaleable capacity.
"The first rule of any technology used in a business is that automation applied to an
efficient operation will magnify the efficiency. The second is that automation
applied to an inefficient operation will magnify the inefficiency."
Bill Gates - Microsoft
Artesian has an experienced in-house legal team covering debt & VC fund formation, deals & transactions. across multiple jurisdictions and territories
Artesian's finance team covers a range of areas including fund & company financial
reporting, market valuations, investor reports & tax/audit
Artesian ensures institutional grade compliance standards across all our activities and interactions with regulators, market counterparts & investors
Artesian has broad proficiency in a range of reporting requirements including risk management, regulatory & compliance, performance and investor updates
FUND ADMINISTRATION AS A SERVICE (FAaaS)
The growth in VC activity in Australia, the introduction of a range of stimulatory taxation benefits for Australian VC combined with Artesian’s deep experience in Australian funds administration for its own VC business provides Artesian with the opportunity to expand into the dominant Australian VC funds administration as a service business within 5 years.
CHALLENGES FOR NEW VC FIRMS
The sharp increase in the number of Australian start-ups launching over the last 5 years has resulted in an equivalent increase in the number of aspirational fund managers looking to launch VC funds. Many of these are first time managers. While they may have had experience working in investment banks, traditional funds management or have been angel investors, in most cases, they will face a number of challenges including:
no experience in running a VC fund and little understanding of the necessary licensing and fund accounting responsibilities
no experience of the complexity, or cost, of building VC funds (such as ESVCLPs) that qualify under the Venture Capital Act 2002 as providing tax free returns to investors
their proposed or actual funds will typically be small. VC fund raising is difficult even for established managers let alone those new to the industry
accordingly, the expected fee income will be low and the capacity of these managers to afford the front-end and on-going costs of building and running a fund is constrained
in many cases, the licensing requirements alone are enough to dissuade would-be managers from launching funds. These managers cannot afford to undergo the licensing process and do not have the personnel capability to fill the key person roles required by ASIC under the Australian Financial Services Licensing rules
they cannot afford to either employ the staff required, or implement systems, to run an effective back office to satisfy both ASIC and their future investors that they are a credible investment proposition
As a result, there is strong and growing demand for an outsourced solution to address this gap in the market.
ARTESIAN FAaaS SOLUTION
FAaaS SOLUTION FOR NEW VC FIRMS
Artesian is established and licensed in Australia to conduct all relevant funds administration activities for VC fund managers.
Artesian currently manages 8 ESVCLPs and 2 AFOFs.
The fund administration and related functions for each of those funds is undertaken by Artesian’s funds management operations team located in Melbourne comprising:
Australian financial services licensing
investor relations expertise.
Artesian (Artesian Venture Partners) holds a wholesale AFSL which allows it to:
advise wholesale investors;
deal in a range of financial instruments including securities and derivatives with wholesale investors; and
take custody of financial assets.
There is no regulated element of the venture capital business cycle that is not covered by the AVP Licence.