Early-stage venture capital firm Altai Ventures has closed its second fund on $53m, as it targets InsurTech and FinTech founders.
The fund, Altai Ventures Fund II, initially had a target of $50m and received contributions from Bain Capital Ventures, Century Equity Partners, and LPs across property and casualty insurance, life insurance and retirement, insurance brokerage, and commercial banking.
Altai Ventures focuses on InsurTech, FinTech and enterprise software for financial services. IT typically backs companies in seed and Series A stages, offering them expertise, deep industry knowledge, and strategic LPs to drive immediate, meaningful value creation.
Investments are primarily in North America and typically range between $200k – $500k for Seed rounds and $1m – $3m for Series A rounds.
Altai Ventures founder and managing partner Oleg Ilichev said, “We deeply believe in a principles driven business model with customer centricity at the heart of it and, as a result, have constructed a platform that can drive substantial and differentiated value for our founders and strategic partners.
“Financial institutions represent a multi-trillion dollar industry that is still at the early stages of technological transformation. Now that we’ve closed on this new fund, we’re looking forward to working with inspiring entrepreneurs and our strategic LPs to solve some of the biggest challenges in financial services.”
One of the firm’s portfolio companies is LULA, an integrated suite of insurance infrastructure tools used to build and maintain insurance programs. The company recorded 900% YoY revenue growth in 2022.
Other portfolio companies are AI-driven claims guidance platform EvolutionIQ and tech-enabled commercial insurance and benefits brokerage Newfront.
Speaking on the fundraise, Bain Capital Ventures partner Matt Harris said, “One of the things that attracted us to Altai is that our investment philosophies are very much aligned. At Bain Capital Ventures, we help build iconic companies, not just back them. The same can be said for the team at Altai–they like to roll up their sleeves and work alongside startup founders.”
The investment firm joined the $21m funding round of EvolutionIQ in April 2022. The capital was raised to support the growth of its teams and build new AI modules.
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