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The UK venture capital scene is booming. In 2024, the UK attracted approximately £16 billion in VC investments—a testament to its status as a global investment powerhouse. According to the BBB, the UK is now the third largest VC market in the world, behind only the US and China. This development however also comes with fierce competition, whether it’s securing top deals, attracting talent, or fundraising from top LPs.
The Hard Truth
In a high-stakes, fast-paced environment, operational efficiency isn’t optional—it’s essential. Fund managers are realizing that streamlined processes can be the difference between thriving and merely keeping up. It’s not just about allocating capital—it’s about freeing up time to focus on what truly matters: deal sourcing, portfolio support, and LP relationships.
Private markets have more than tripled in the last 10 years, with assets under management growing from $8 trillion in 2014 to $24 trillion in 2024. As $150 trillion in retail assets seeks access to private markets; the need for operationally efficient infrastructure has never been more evident.
What LPs Really Want (And Aren’t Getting)
When investing in the venture asset class, LPs are looking to invest in cutting-edge tech companies; nonetheless, their investment experience is often plagued by outdated, clunky processes. Imagine investing in a deep-tech VC fund, only to receive performance updates as a PDF—or worse, capital call notices containing sensitive bank details (a prime phishing target) still being sent over mail. This poses a significant security risk for fund managers and LPs.
LPs expect (and deserve):
- Real-time data access
- A seamless digital experience
- Data security and safe data handling
LPs also value the personal touch in their investments, such as dedicated time from the investment team, custom reporting requirements, and a yearly Annual General Meeting (to name a few). For most funds, achieving this level of service and operational excellence in-house is a daunting challenge. While building robust operations and admin infrastructure in-house is possible, it pulls resources away from core investment activities, which define your fund’s success.
The ‘Solutions’—and Their Drawbacks
To address these issues, fund managers have historically resorted to two sub-par solutions:
1. The Patchwork In-House Stack
Many funds rely on in-house admin teams using a mishmash of tools that don’t “speak to each other”. LP onboarding might live in one system, fund accounting in another, and portfolio monitoring in a third one. When reporting season hits, the operations teams scramble to sync these systems, often resorting to spreadsheets to fill the gaps.
What this says about fund operations: Inefficiencies, frustration, and avoidable errors.
2. Traditional Outsourced Admin
Some funds hand over operations to professional services firms. While the service level can be decent, these firms typically rely on manual and outdated processes. The result? Slow turnarounds, higher error rates, and more back-and-forth for fund managers (think: shadow accounting). Adding to the challenge, the fund admin space has seen a wave of M&A activity, leading to decreased service quality due to staff turnover and system changes. Instead of solving problems, these firms often can end up creating new ones.
Why this matters: Both approaches fall short when it comes to speed, scalability, and delivering a standout LP experience.
Enter bunch
So here’s where service meets tech.
Our platform automates processes, simplifies fund operations, and enhances the user experience for LPs. With real-time reporting and seamless integrations with portfolio monitoring, accounting systems, and bank accounts, fund managers can focus on value creation rather than admin overheads.
Alongside cutting-edge tech, we provide a service comparable to traditional outsourced fund operations. This ensures high-touch service combined with automation—a winning combination for UK funds.
You care about three things when it comes to admin: 1) accuracy, 2) timeliness, and 3) cost-efficiency. Whether the process involves software, manual work, or AI, what truly matters is the finished outcome, not the tools behind it.
bunch is not a tool — it’s finished work.
Why You Should Care
The VC landscape is evolving. Funds that can’t adapt will get left behind. Technology isn’t just an option—it’s a necessity. At bunch, we believe in building solutions tailored to our clients’ needs. That’s why we’re eager to hear from fund managers like you:
• What challenges do you face?
• What features would make your operations easier and more efficient?
Let’s build the future of fund admin together—one where technology and expertise meet to support the UK’s thriving venture capital market.
