Formulary Financial Emerges from Stealth to Reinvent Fund Administration

NEW YORK, Jan. 20, 2026 /PRNewswire/ -- Formulary Financial, a full-service, AI-native fund administrator, today announced it has emerged from stealth with $4.6 million in seed funding led by Khosla Ventures, with participation from Acrew Capital, Company Ventures, Human Ventures, Serena Ventures, and Alumni Ventures, among other strategic partners and industry executives.

Formulary offers comprehensive fund administration services across the investment lifecycle — including accounting, reporting, compliance, audit, capital activity, and investor communications — powered by an AI-native platform designed to keep the data accurate, synthesized, and accessible in real time.

The need for reliable data, intelligent operations, and personalized advice

More than $23 trillion in private markets capital is still managed with erroneous spreadsheets, outdated software, and expensive shadow fund administration processes. Incumbent providers keep trying to retrofit legacy infrastructure with modern tools, and new software solutions are experimenting with agentic workflows to replace accountants. But the underlying problem is unsolved: the data remains unreliable and fragmented, and the need for expert fund administration support has only become more critical as asset managers grow in size and complexity.

The fund administration industry also faces a major bottleneck — accountants spend up to 70% of their time on repetitive administrative work and error-prone data entry instead of serving general partners and limited partners. This creates a massive drag on productivity and prevents investors from getting timely, accurate data and high-quality service. As a result, GPs waste time validating their own fund data and LPs receive late or inaccurate reporting. Lack of adequate fund administration support throughout the investment lifecycle could also result in other unnecessary costs and risks, from compliance issues and regulatory penalties to lost investor trust.

Formulary replaces these fragmented systems with a structured data foundation and a modern client experience.

• One Source of Truth. Single platform integrates external and internal data sources, eliminates the need for disparate tools, and delivers an auditable, holistic view of an asset management firm.
• Real-Time Reporting. Records are updated, gated, and tracked immediately, not quarterly, to give investors timely information to make decisions.
• Personalized Investor Service. Embedding AI into workflows enables accountants to focus on value-add activities, deep problem-solving, and strategic advisory for general partners and limited partners alike.

Alfia Ilicheva, founder and CEO of Formulary, said:

"We founded Formulary to transform fund administration from a pain point into a strategic advantage for asset managers. At Bridgewater Associates, I saw firsthand the power of a systematic, data-driven approach to develop a rich understanding of global markets and deliver thought partnership to the world's largest, most sophisticated investors. We are now bringing data systemization to private capital markets, where operational infrastructure has long lagged behind the needs of investors."

"Today, fund administration is defined by manual reconciliation, poor data quality, and massive opportunity cost. Most firms run redundant parallel accounting processes to manage their capital flows. Formulary reimagines fund administration from the ground up, where AI powers fund accounting workflows, accelerates productivity, and generates tailored insights for clients."

Formulary's clients and design partners manage billions in AUM

Formulary already works with a broad range of leading asset managers that use the platform to keep their data accurate, reduce manual work, and accelerate reporting cycles, giving GPs and LPs real-time visibility into performance metrics.

Hari Arul of Khosla Ventures said:

"To modernize fund administration, AI cannot be a feature, it has to be the foundation. The Formulary team is strategically positioned at the intersection of investment management, AI/ML, and fund accounting. Importantly, they are solving the fundamental issue of unreliable, inconsistent data. Their early customers are already seeing the value of a platform designed for accuracy from day one, and we are excited to back their vision."

In practice, Formulary turbocharges accountants by enabling them to complete fund administration processes end-to-end in a unified platform. From generating financial statements and custom reports to managing capital activity and invoices, Formulary streamlines work that takes the most time and creates the most errors across the industry. 

About Formulary Financial

Formulary Financial, Inc. is a full-service, AI-native fund administration business serving private equity, growth equity, and venture capital firms. Built by a team of experts in asset management, fund accounting, and artificial intelligence, Formulary transforms fund administration from error-prone paperwork into reliable data, intelligent fund operations, and tailored insights to help investors manage and grow their businesses. The company was founded in 2025 and is based in New York City. To learn more, visit: www.formulary.co.

About Khosla Ventures

Khosla Ventures is a venture capital firm focused on investments in artificial intelligence, financial services, healthcare, consumer, enterprise, and sustainability. It is known for making early capital investments in startups such as OpenAI, Instacart, Affirm, DoorDash, and Block. To learn more, visit: https://www.khoslaventures.com/

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SOURCE Formulary Financial, Inc.