FinTech-focused SGVC pulls in $51m for Fund III

SGVC has raised $51m for the final close of its oversubscribed third vehicle set to back Silicon Valley FinTechs.

The firm said it drew capital from a pool of investors including more than 120 high-profile entrepreneurs and Fortune 500 executives. SGVC closed the fund’s predecessor in 2016 with over $50m raised from at least 81 limited partners.

SGVC typically aims to invest in revolutionary software companies looking to redraw the landscape of the financial services industry, according to its website.

Fund III has been anchored by Hachschara Insurance Company, True Capital Management, Manhattan West Asset Management, as well as Leumi Investment Services, which also served as a placement agent for the fund.

This latest announcement comes shortly after three of SGVC’s portfolio companies were bought this year including Loop Commerce by Synchrony Financial, SkyGiraffe by ServiceNow, and Redkix by Facebook.

SGVC was founded in 2012 by Dovi Frances and has backed a number of FinTechs such as TripActions, SoFi, Addepar, HomeLight, Next Insurance, Sunbit, and Tipalti.

“Since our inception, SGVC has operated under a somewhat contrarian investment thesis,” said Frances. “We opted to build subject-matter expertise and invest predominantly in early stage financial technology.

“This approach has proven fortuitous as we are now in an era where institutional money has flooded Silicon Valley while inflating late-stage valuations in a radical and non-sustainable fashion. We’ve insisted on maintaining our investment focus and our fund size knowing that our value-add, returns, and our opportunities lie within early stage deals.”

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