New York-based investment firm Upper90 has closed its third fund on $180m, as it looks to back FinTech, e-commerce and supply chain finance companies.
The vehicle was backed by a strategic investor base of 300 entrepreneurs.
Upper90 claims to have pioneered an investment model that combines tailored credit and equity for alignment with technology businesses that have predictable revenue or collateral.
With Fund III, the company will continue its founder-friendly credit strategy, which helps businesses solve their capital needs, while maximising ownership and control.
Since its inaugural fund in 2018, Upper90 now manages over $2.2bn across 43 portfolio companies. The investor previously raised $55m in 2021 to back 15 companies.
“Over the last 10 years, founders have faced fifty percent dilution through Series B rounds. Upper90-backed founders, conversely, own materially more by utilising credit earlier for the healthier parts of their businesses. With pressure on valuations, access to alternative financing solutions is top of mind,” said Billy Libby, co-founder and CEO of Upper90.
“Ninety percent of the world’s data has been created over the last year, which has personalised every part of our lives, and we launched Upper90 because there should be a similar trend in how startups are capitalised.”
Its portfolio includes several e-commerce and FinTech startups, including Octane, Crusoe Energy, Mundi, Thrasio, Filmrise, Heroes, Clutch, Karat, Beacon and Settle.
Last year, Upper90 joined the Series B round of Rally, which lets consumers invest into collectibles. The company raised $30m in equity and $50m in debt, with the debt being supplied by Upper 90.
The current financial market is going through a turbulent time and there is a fear capital will dry up. FinTech Global recently spoke to a number of players in the FinTech space about whether FinTech companies should be worried.
On the topic of investment capital, many agreed it would be harder for some companies to raise capital, but it will always be available for strong companies.
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