#USA #Detroit #Real Estate #InvestNext #TransAct

InvestNext Launches Transact: A Purpose-Built Business Account for Raising Capital

In a significant move aimed at enhancing the operational efficiency of capital raises in the real estate sector, InvestNext has introduced Transact, a streamlined business account feature tailored specifically for general partners (GPs) involved in real estate funding. This innovative solution enables sponsors to set up a business account directly within the InvestNext platform in as little as one business day.

With the increasing demand for efficient capital management, GPs managing over $23 billion in funds for 1,600 general partners and 90,000 investors face traditional banking challenges that often slow down their funding efforts. The introduction of Transact is a direct response to the feedback received from GPs about the cumbersome process of establishing business accounts. Historically, opening a business account required extensive paperwork and outside banking interactions, which often resulted in delays and inefficiencies during crucial funding periods.

Key Features of Transact

Transact revolutionizes this process by embedding the account setup directly within the InvestNext interface, allowing sponsors to bypass the standard banking hurdles such as branch visits and coordination with banking staff unfamiliar with the capital structures of private investments. Some of the standout features of Transact include:

• - Rapid Account Setup: GPs can establish an account digitally without the need for face-to-face meetings or prolonged waiting periods.
• - Zero ACH Fees: Significantly reducing transaction costs, Transact enables sponsors to accept and transfer investor capital via ACH without incurring per-transaction fees. For example, on a $10 million raise, this equates to an estimated saving of about $3,000 in fees alone.
• - Automatic Wire Reconciliation: Transact simplifies the reconciliation process by automatically matching incoming wire transfers to the existing capital table, thus reducing administrative burdens.
• - Built-in KYC/AML Verification: Investor verification is integrated into the platform at no additional charge, facilitating a secure and seamless process for the parties involved.
• - Flexible Capital Movement: Sponsors have the flexibility to transfer funds quickly to escrow or other accounts, with daily wire options available.

Bridging the Gap

The concept of Transact aligns with today's expectations for seamless digital experiences in finance. Matthew Attou, the Chief Product Officer at InvestNext, emphasized that the goal is to ensure that the banking process does not hinder the momentum of a capital raise. By integrating banking functionalities into the entire capital raising workflow, Transact redefines how GPs prepare for fundraising activities.

In the past, GPs reported spending countless hours navigating inefficient banking processes, a challenge that markedly diverted their focus from critical business operations. Denver Ventures, a client of InvestNext, shared their relief, stating, "This is finally not the thing slowing us down."

Availability and Future Prospects

Transact is now available to all GPs on the InvestNext platform, and further developments are anticipated to enhance its capabilities based on continued user feedback. InvestNext's commitment to improving operational efficiency in real estate fundraising reflects its understanding of the challenges that GPs face.

As InvestNext continues to expand its features and services, the introduction of Transact is not just about providing a banking solution; it's about fostering a more efficient environment for real estate funding and ensuring that GPs can focus on what they do best—connecting investors with opportunities in real estate. For more information, GPs can visit InvestNext directly.

About InvestNext

InvestNext is recognized as a pioneering real estate capital management platform. It combines relationship building with scalable solutions for real estate funding. With 1,600 sponsors using its tools for managing raises, investor relations, document management, and payment infrastructures, InvestNext is a notable player headquartered in Detroit, Michigan. Please note that InvestNext is a software firm and not a banking institution; banking services are provided in partnership with Grasshopper Bank, N.A., Member FDIC.