Globacap raises $21m Series B to drive digitisation of private capital markets

Globacap, has today announced the successful completion of a $21m Series B round of funding as the firm ramps up its drive to digitise and automate the world’s private capital markets. Investors include capital markets heavyweights Moore Strategic Ventures, LLC, Cboe Global Markets, Inc., and the Johannesburg Stock Exchange (JSE), as well as GABI Ventures and leading Asia-focused investment firm, QBN Capital. 

Total private markets assets under management (AUM) reached $11.7 trillion in 2023 and have grown at an annual rate of nearly 20 per cent since 2017. This is expected to nearly double over the next five years. Despite the size and importance of this rapidly growing market, transactions are still laborious, manual and time-consuming, often taking weeks or months.  

Globacap aims to unleash the potential of private capital markets through digitisation and automation. Its workflow automation software-as-a-service brings public markets-like efficiency to private markets. It streamlines time-consuming processes from issuance, and ongoing administration, through to transferability and settlement of securities, reducing costs and improving efficiency for market intermediaries.  

Globacap has grown rapidly since launching six years ago. It hosts 15 whitelabels for global institutions and an ecosystem that has managed over 70 private placements and completed over $350 million in secondary transactions of private assets, with automated settlement, and currently administers $14 billion of private securities.  

The capital markets technology firm will use the fresh injection of funding to ramp up its marketing and sales efforts, expand into new geographies and invest in developing its product to grow its customer base. It also plans to build on the success of its whitelabel product which digitises and automates processes throughout private capital markets and is used by leading intermediaries including the JSE and Instinet. 

 “The Globacap ecosystem is a vital enabler to our JSE Private Placements business, and our joint relationship has equipped the JSE to drive our diversification strategy in supporting capital formation in private markets. As the JSE, we support Globacap’s next growth phase and we look forward to continued growth that will produce innovative and implementable solutions to address the ever-evolving need of customers,” says Valdene Reddy, Director of Capital Markets, JSE. 

Myles Milston, Globacap Co-Founder and CEO says: “Private capital markets are rapidly growing, but their opaque nature is holding them back from reaching their true potential. We are bringing public markets-like infrastructure to private capital markets to improve access, boost liquidity and remove administrative burdens. Securing considerable backing from world-leading investors during a time of market turbulence, risk aversion and uncertainty is powerful validation of our mission to transform and drive efficiency in private capital markets. We’re in a unique position to grow through the current market turmoil, leading with strength as market conditions eventually improve.” 

Alex Green, Globacap Co-founder and CCO adds: “The completion of our Series B enables us to firmly accelerate our global scaling journey. In recent weeks, we have made experienced hires including new COO, Joanna Tibbitt, new CMO, Suzanne McLaughlin, and added three new hires to our sales team. We have a strong team, market validation from key clients across exchange groups, securities firms, private equity, and other asset managers, and now validation from our investors, who are some of the world’s largest and most respected institutions.”