Automation of Investor onboarding activity for a leading Venture Capitalist

Customer profile

A leading VC that invests in early-stage startups wanted to establish robust processes to streamline their investor onboarding process and all related action items and communications

Requirement

We approached the VC entity to assist in the automation of multiple processes related to investor onboarding. Investor onboarding is a key activity for any VC, especially in their early phases. The system required automated processes for

• Investor KYC verification

• Investor Communications

• Investor onboarding formalities

• Documentation

• Startup Deals Synopsis

The customer was keen on minimizing manual efforts and managing the preliminary risk profile. Our team worked closely with them to create tailor-made infrastructure which encompassed various sub-processes.

Investor background verification

An interface was set up between the VC entity and the KYC service provider to complete the KYC checks seamlessly. An investor applies to the VC website and uploads the requisite KYC documents such as income statements, Aadhar, PAN, etc. An interface was built to pull the new customer application data and communicate with an e-kyc tool to perform the background checks. The system also did an automated bank account verification via Pennydrop.

Post-completion of the KYC, the report was made available to key stakeholders in the VC firm.

Dynamic Agreement generation

Post-completion of the KYC of the investor, a tool was built to generate a suitable agreement to be completed between both parties. The tool accommodated various plug-and-play features such as:

- Name of the investor,

- Nature of the investor (Individual, partnership firm, company)

- Number of signatories

- Variables pertaining to various nature/types of agreements

- Dynamic calculation of allocation of invested capital

​E-signing

The key next step post the validation of agreements was to complete the signing formalities that followed the below process:

1. Procurement and assignment, of e-Stamp Paper

2. Population of agreement draft on an e-stamp paper

3. Automated links sharing with investors through email, SMS, and hyperlink on the Website for e-signing of the agreements

4. e-Signing of Agreement on e-Stamp paper online via Aadhaar Based Verification

The work with this customer made their investor onboarding process seamless, reduced the need for follow-ups with investors and KYC service providers, and resulted in significant efficiencies in both effort and time for our happy customers.