Interview With Alexander Grimm, Co-Founder and MD of Aquaty
Welcome to this edition of Founders Spotlight interview with Alexander Grimm, Co-Founder and MD of AQUATY, an innovative fintech platform that digitizes and democratizes access to venture capital and private market investments for a broader audience of investors and founders. Ready to dive into the thrilling and inspiring story behind AQUATY?
What inspired you to create AQUATY, and what is your long-term vision for the company in driving innovation and reshaping the venture capital landscape?
The idea for AQUATY came from seeing the difficulties and high entry barriers in the venture capital industry. Our vision is to make this area more open to everyone, much like how easy it is to trade stocks. That’s why we sometimes compare our vision to NASDAQ. NASDAQ introduced an electronic trading system in the early 1970s that immediately increased transparency and lowered costs compared to the old way of trading over the phone. At AQUATY, we want to bring about a similar transformation, creating a “NASDAQ moment“ for private capital, where access is easier and the process is more efficient for everyone.
What specific challenges does AQUATY address for founders and investors?
AQUATY addresses several key challenges, including high transaction costs, complex legal processes, and the lack of transparency in private market transactions. Our platform leverages AI to simplify these processes, making venture capital more accessible and enabling more efficient decision-making for all parties involved.
What features does AQUATY offer to facilitate digital settlement of investment processes, secondary transactions, and management of virtual stock programs like ESOP?
We offer a suite of features tailored for seamless navigation. Our foundation rests upon a meticulously constructed legal, regulatory, and AI infrastructure, ensuring the smooth execution of VC transactions. Through automated generation of requisite legal documents and adherence to regulatory standards, we provide a framework that instills confidence and compliance.
Furthermore, our AI infrastructure converts previously unstructured private market data into organized, actionable insights, enhancing decision-making capabilities. At the core of our platform lies the AQUATY engine, supporting a range of customer products designed for intuitive use.
For instance, investors can purchase startup shares with just a couple of clicks, while founders can efficiently set up and manage their ESOP, maximizing available tax benefits. Additionally, our platform facilitates the seamless sharing of deal flow with current or prospective Limited Partners, all while ensuring legal compliance for venture capital and syndicates.
Congrats on the €2,300,000 funding. How do you leverage this investment to further innovate and expand AQUATY’s offerings?
Thank you! We plan to use this funding to further develop our technology and expand our offerings. We just launched our multi-SPV product for Business Angels and emerging or established venture capital companies. We also want to enhance our Tech and AI capabilities to provide greater transparency and efficiency.
With recent funding, how has the AQUATY’s cap table evolved?
We don’t disclose any details. However, the funding has brought in great investors who believe in our business model and see the potential to simplify private market transactions. They have not only strengthened our financial base but also enhanced our network, opening up new ways for collaboration and growth.
What unique innovations set AQUATY apart from other platforms in the venture capital investment space?
Our platform reduces complexity and transaction costs significantly, features a regulatory and technological setup that supports multiple investment structures, and provides tools that empower all VC stakeholders with digital solutions for efficient market engagement.
Can you share insights into strategic partnerships or collaborations that AQUATY plans to expand and strengthen its impact in the investment ecosystem?
At the moment, our primary focus isn’t on exploring partnerships, but we’re currently working on developing one or two collaborations within the FinTech and RegTech sectors. As we expand our solutions across the venture capital value chain, the importance of strengthening our impact in the investment ecosystem through partnerships will likely increase.
How does AQUATY ensure security and transparency in investment transactions conducted through its platform?
All of our standards comply with the strongest requirements. Security and transparency are fundamental to our platform. We employ advanced encryption and secure cloud environments to protect data. Furthermore, our use of AI enhances transparency by enabling data-driven decisions and providing clear visibility into traditionally opaque private market data.
What message would you like to convey to aspiring entrepreneurs with AQUATY’s experience?
To aspiring entrepreneurs, I would say: leverage today’s technology to solve meaningful problems. With platforms like AQUATY, the venture capital ecosystem is more accessible – use these tools to innovate, scale, and make a significant impact.
What do you see as the biggest opportunities and challenges for AQUATY in the evolving landscape of venture capital, and how do you plan to navigate them?
We believe that within the next decade, the majority of venture capital transactions will be conducted digitally, with transaction costs approaching those of public markets. By leveraging advanced technologies such as AI and blockchain, adapting to new regulations, and responding to the ongoing shift of customers towards digital solutions, AQUATY is poised to lead this transformation in venture capital and other private markets.
Our strategy is reminiscent of the launch of NASDAQ in 1971, which democratized trading across the United States. Despite initial skepticism, NASDAQ eventually gained widespread trust. Similarly, we aim to achieve recognition for the potential of our technology.
