Arch, a software used by more than 180 family offices to manage their alternative investments, announced on Monday that it raised $52 million in a Series B round of funding.
Oak HC/FT, a venture and growth equity firm that has invested in over 100 fintech and healthcare companies and has $5.3 billion in assets under management, led the round. Menlo Ventures, Craft Ventures, Quiet Capital and others also participated in the latest fundraising. They join a group of earlier investors that includes Carta, Citi Ventures, and GPS Investment Partners, as well as IBM vice chair Gary Cohn, Doordash CEO Tony Xu, and Warby Parker founders Neil Blumenthal and Dave Gilboa.
Arch, founded in 2018, did not disclose the company's valuation in the latest round, but it’s a “significant markup” from its valuation when it raised $20 million in a Series A round in 2023, Ryan Eisenman, co-founder and CEO of Arch, told Modus. The company intentionally remains unprofitable and focused on growing, but it has always been conservative with its cash and well capitalized, Eisenman said. The startup has spent less than $18 million of all the capital it has previously raised.
Including the Series B round, Arch has raised a total of $77.5 million of capital.
“Over the last seven years, we have been really capital efficient, and we plan to continue to be capital efficient…a core part of our DNA is building a sustainable business. In the family-office space, no one wants to change providers, especially if they like a solution. You need your providers to be financially and fiscally conservative, so that they'll be around for a long time,” Eisenman said.
Investors use Arch to manage the deluge of emails, documents, and various portals required of alternative investments, whether they are doing that directly in companies or through private-equity, venture, or other types of funds. The company, like many software businesses today, is leveraging artificial intelligence to collect information, identify insights for investors, and enhance workflows. For example, a new feature automatically helps customers analyze and fulfill capital calls for investments.
“In our diligence calls, Arch clearly stood out. We have LPs that use lots of solutions, but Arch clients showed a clear enthusiasm for the product and team that was lacking across any peer solutions. That, paired with their rollout across one of the nation's biggest banks, their traction in the institutional space, and the hundreds of family offices and RIAs that use the platform, gave our team deep conviction in Arch — now and in the future,” Matt Streisfeld, general partner at Oak HC/FT, said in a statement.
Arch charges customers an annual subscription fee based on the number of investments they manage using its platform. Most of the platform is included in that fee, although it has started to offer more services — tools for chief investment officers, support for 1099 tax forms, and payment services — for additional fees.
While preparing to raise the Series B round, which closed this summer, Arch did a study and found that one private-market investment, from beginning to end, requires over 5500 clicks on mice and keyboards as investors sift through emails, aggregate information themselves, and move cash. Family offices, which allocate roughly half their investment portfolios to alts, can easily invest in over 200 different funds and companies directly, which means it takes roughly one million clicks to establish a portfolio. All those investments also require ongoing attention, and new investments are made every year. It’s never-ending.
Out of Arch’s more than 450 customers, there are more than 180 single-family offices (including some of the largest, with portfolios larger than $30 billion), as well as 100 independent private wealth managers and multi-family offices, four of the top 20 global banks, seven of the top 20 accounting firms, and fund administrators, law firms, and institutional investors. Many of those clients arrived this year; Arch has added 100 new clients so far in 2025, the company said.
During the past 14 months, private-market assets on the Arch platform have grown from $100 billion to over $250 billion. More than 50% of Arch’s users were referred to the platform by an existing customer, and it has a 98.8% year-over-year retention rate, Eisenman said.
The latest round of capital will be used to continue developing features and add new ones, especially for institutional investors, big wealth management firms and family offices. The company plans to grow its technology, sales and marketing teams.
“It seems like people are generally dissatisfied with the technology that they have today and the technology they haven't necessarily bought, but they've been given. And we think it's time for a better paradigm,” Eisenman said.
In March, RSM, the global tax and accounting firm with many family-office clients, formed a strategic partnership with Arch, effectively replacing a similar partnership it had with one of Arch's competitors, Canoe Intelligence, according to a person familiar with the relationships.
Earlier this month, Canoe Intelligence launched an incubator where investment and operations professionals can use A.I.-powered tools before they are released to the broader market. The company, which also has over 400 customers of various types, raised a $36 million Series C round of funding in July, led by Goldman Sachs.
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