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Posted Mar 8, 2022

Digital enablement fueled 2021 capital raising

Digital Enablement Fueled 2021 Capital Raising

The right technology—and how you integrate it into your investment management operations—can get your IR team to work in harmony and allow you to better target deal communications so they resonate with the right investors. But more importantly, technology can help you raise more capital. And given that some expect the deal pipeline to pick up this year, that could be the thing that gives you an all-important edge over your competitors in 2022.

Our recent research backs this up. In our soon-to-be-released capital raising survey, 84% of the respondents said they believe the market is getting more competitive, which points to significant upside potential for investment managers who use technology solutions to automate administrative work so they can reallocate the time saved to dealmaking.

Fundraising research

To get a better idea of how much of a difference it could make, we analyzed data on our platform to compare the fundraising success of customers who use Digital Subscriptions, our online fundraising feature, versus those that don’t. Digital Subscriptions provides an interactive and dynamic workflow for investors, enabling GPs to deliver a better experience to their investors and eliminate the tedious back and forth associated with traditional methods of managing the subscription process, such as Docusign or physical mailings.

Watch this video to find out more about Digital Subscriptions.

The result?

Fundraisers using Digital Subscriptions significantly outperformed their peers in 2021, and they are in a much better position to raise capital as we move into a competitive and evolving market going forward.

How much better? Customers using Digital Subscriptions raised a total of $10.9 billion in 2021—a 272.5% increase over 2020. What’s more, customers using the feature consistently raised more capital from more investors than customers not using it. Depending on the size of the firm, customers with Digital Subscriptions saw an average increase in equity of at least 44% and as high as 1,280% when compared to firms of a similar size not using Digital Subscriptions.

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In addition to raising more equity, digitally enabled firms saw significant increases in both check size and number of investors across their deals, with the total number of investor positions up 206.2% year over year and the average check size increasing by 21.61%, from $162,594 to $197,729.

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This fundraising success was not limited to a particular region, either. Across the country, the top 10 users of Digital Subscriptions raised, on average, $92,656, 352 from 406 investors.

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The ability to raise more from more investors is not the only reason to use our Digital Subscriptions feature. It gives GPs complete visibility and control over the subscription progress—from sending out communications to monitoring commitment amounts—so they can keep their investors informed and be confident that nothing will fall through the cracks. Happy investors mean more repeat business and more referrals.

Top fundraisers

“Customers who used Juniper Square Digital Subscriptions in 2021 raised more money from more investors than ever before,” said Matt Lawson, Chief Marketing Officer at Juniper Square. “This trend is consistent with everything we’re seeing in the market—GPs who use technology to transform their investor experience are winning an outsized share of investment capital.”

Our customers confirm that Digital Subscriptions has transformed their fundraising.

Erin Patridge, Client Relations Manager at Trinity Investors says, “Using Digital Subscriptions has been a gamechanger for managing investments and communicating with investors. We raised more capital in 2021 than ever before. The customized tools make fundraising more efficient, ensure our records are accurate, and improve our interactions with clients.”

By using Digital Subscriptions in 2021, we were able to raise more than $125 million. Not only did the tools make fundraising faster and easier for our team, our investors appreciated the way it streamlined paperwork, reduced human error and made our communications more effective.

Cary Goldman
CEO and Founding Partner
Timber Hill Group

In addition to Trinity and Timber Hill, below are a few more of the top fundraisers that enjoyed fundraising success in 2021 using Digital Subscriptions.

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Want to be on our list of top fundraisers next year? Contact us to find out how we can help you raise more money from more investors.