Artesian provides fund administration as a service (FAaaS) to emerging VC managers, accelerator funds, family offices, CVCs (corporates), government organisations and institutional investors. 

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'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 :

  • Legal

  • Compliance

  • Accounting

  • Investor relations

  • Performance Reporting

  • Audit

  • Tax

  • 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

FAaaS Key Services

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Legal

Artesian has an experienced in-house legal team covering debt & VC fund formation, deals & transactions. across multiple jurisdictions and territories

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Accounting

Artesian's finance team covers a range of areas including fund and company financial  reporting, market valuations, investor reports and tax/audit

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Compliance

Artesian ensures institutional grade compliance standards across all our activities and interactions with regulators, market counterparts & investors

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Reporting

Artesian has broad proficiency in a range of reporting requirements including risk, regulatory and compliance, performance and investor updates

FAaaS Overview

Overview

The growth in VC activity in Australia, combined with Artesian’s deep experience in Australian funds administration for its own VC and debt business provides Artesian with the opportunity to become the dominant Australian VC funds administration as a service business within 5 years.

Challenges for Emerging 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)

  • 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, management 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 AFSL 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

FAaaS Solution for Emerging VC Firms

As a result of the challenges detailed in the overview, there is strong and growing demand for an outsourced solution to address this gap in the market.

Artesian is established and licensed in Australia to conduct all relevant funds administration activities for VC fund managers.

Artesian currently manages a range of ESVCLPs, AFOFs and unit trusts.

The fund administration and related functions for each of those funds is undertaken by Artesian’s funds management operations team located in Melbourne comprising:

  • fund accounting

  • legal

  • taxation

  • compliance

  • audit

  • reporting

  • 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.  

Existing FAaaS Mandates

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Seed Space is an Australian and Swiss based early stage venture capital firm focused on emerging fintech opportunities.

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Galileo is a venture fund and accelerator that invests in & supports Australia’s best & most ambitious emerging founders.

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ImpaQt Fund is an early stage venture capital fund focusing on ‘impact investments’ across a diversified portfolio of high growth impact-driven companies

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