Cardiff-based startup Delio has secured an additional $8.3 million in a funding round led by Octopus Ventures. The firm provides financial institutions with a white label solution designed to facilitate investor access to alternative assets including private equity, private debt, and real estate. The round saw participation from early backers Maven Capital Partners, and now brings the startups’ total funding to $15.5 million.
As we’ve seen over the course of the pandemic, weary investors have increasingly turned to alternative assets to safeguard their wealth. While these investments are on the tip of investors’ tongues, financial institutions have traditionally struggled to offer illiquid investment opportunities, particularly at speed, transparently, and compliantly.
With the appetite for private equity alone reaching a market size of $6 trillion, and recent changes to US and European regulations on who has access to certain alternative assets, the writing is on the wall for financial institutions, either get with the game or be prepared to retire to the bench.
Keeping these players very much on the pitch is exactly the goal for Delio. Offering an end-to-end digitised solution for the private investment cycle, the startup is now underpinning the private markets platforms for more the 90 financial institutions including Barclays, ING, UBS, and Sumitomo Mitsui Trust Bank, and counts over $26 billion worth of investment opportunities available.
“There is a lot of noise around how institutions overcome the traditional barriers to private markets. We’ve taken a different approach, creating white-labeled technology that acts as the digital building blocks on which firms can scale their propositions,” explains chief executive and co-founder Gareth Lewis.
The new funds are slated to help the startup further flesh out international operations and lay the groundwork for a network that aims to connect capital raisers, financial institutions, and investors and share investment opportunities on an institution-to-institution basis.