I built Infra One because the technology available to emerging fund managers was, to put it bluntly, inadequate. Legacy fund administrators run on systems designed in the 1990s — batch-processed, file-based, built for quarterly reporting cycles. The investor experience they deliver reflects this: PDF reports emailed as attachments, paper-based onboarding, and data that is always slightly out of date.
But the answer is not to throw technology at every problem. Some tools are essential. Some are nice-to-have. Some are solutions looking for a problem. Here is how to tell the difference.
Essential: digital investor onboarding
If you take one thing away from this article, let it be this. The investor onboarding experience is the single most impactful piece of technology in your fund operations. It is the first thing your LPs interact with. It sets expectations for everything that follows.
A modern onboarding workflow collects subscription documents, identity verification (KYC/AML), tax self-certification forms (W-8BEN, W-9, CRS), and accreditation documentation in a single digital flow. No printing. No scanning. No emailing PDFs back and forth. The investor completes everything in one session, the data is validated automatically, and the compliance team reviews a clean, structured file rather than a stack of scanned documents.
This is not a luxury. It is table stakes. Institutional investors — even those investing in a $2M SPV — expect this level of professionalism.
Essential: automated capital calls and distributions
Capital call processing is one of the highest-risk operational activities in fund management. A miscalculated call amount, a wrong wire instruction, or a missed deadline can create real financial and legal problems. Automating this process — calculating pro-rata amounts, generating call notices, issuing wire instructions, and reconciling incoming funds — reduces error rates and frees your team to focus on investment decisions rather than spreadsheet arithmetic.
The same applies to distributions. When you have a realisation event, you need to calculate waterfall allocations, generate distribution notices, and process payments accurately and promptly. Manual calculation in spreadsheets is error-prone and slow.
Essential: real-time financial visibility
The traditional model of quarterly reporting — where your fund accountant produces financial statements weeks after quarter-end — is increasingly insufficient. LPs expect more frequent updates. GPs need real-time visibility into their fund's financial position to make informed decisions. A platform that provides live dashboards showing NAV, portfolio valuations, fee calculations, and cash positions replaces the cycle of waiting, requesting, and reconciling.
Essential: secure data rooms
Every fund needs a secure, organised repository for investor documents, legal agreements, portfolio company information, and compliance records. If this is currently a shared Dropbox folder or a Google Drive link, you have a problem. A purpose-built data room provides granular access controls, audit trails, and a structured filing system that scales as you grow from one vehicle to many.
Important: cybersecurity foundations
You do not need to become a security expert, but you need to ensure your technology providers meet baseline standards. ISO 27001 certification, GDPR compliance, encryption at rest and in transit, multi-factor authentication, and regular penetration testing. If your fund administrator cannot demonstrate these basics, your investors' sensitive data is at risk. With DORA now in effect across the EU, the regulatory bar for digital resilience is rising.
Useful: API integrations
If you use external tools — portfolio monitoring software, CRM systems, accounting packages — the ability to connect them via APIs eliminates manual data re-entry and reduces errors. This becomes increasingly valuable as your operation scales, but is not strictly necessary for a first fund.
Emerging: AI in fund operations
AI is beginning to deliver real value in specific areas: document processing (extracting data from unstructured PDFs), DDQ response drafting, and investor communication summaries. We are building AI capabilities into Backbone where they deliver measurable time savings. But be sceptical of vendors claiming AI will transform your entire operation overnight. The most valuable AI applications in fund management are narrow, well-defined, and measurable.
Noise: building your own stack
Unless you are running a multi-billion dollar platform with a dedicated technology team, do not build your own fund management software. The engineering effort is enormous, the regulatory requirements are complex, and the maintenance burden is permanent. Buy or outsource — and invest the time you save in finding and executing deals.
How Backbone brings this together
We built Backbone to deliver everything in the "essential" category out of the box. Digital investor onboarding via Ventures, secure document management via Data Rooms, investor relationship management via Contacts, expense tracking via Expenses, and portfolio analytics via Multiples. One integrated platform, not a patchwork of disconnected tools.
If you are evaluating technology for your fund operations, book a call with our team and we will show you a demo.
DISCLOSURE: This communication is on behalf of Infra One GmbH ("Infra One"). This communication is for informational purposes only, and contains general information only. Infra One is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Infra One does not assume any liability for reliance on the information provided herein. © 2026 Infra One GmbH All rights reserved. Reproduction prohibited.