Venture Capital firm FinTech Collective has closed a pair of funds, which have a combined value of $250m and will invest into FinTechs around the world.
Its first fund was closed on $200m, which will focus on early-stage investments within FinTech.
Its second vehicle has a capital pool of $50m and is aimed at open-source financial protocols and applications built on smart-contracting platforms, such as Ethereum. This strategy will invest into DeFi solutions, including equity and liquid tokens.
There are three key themes FinTech Collective will focus on. These are, the accelerating shift to digital finance, the rise of spending middle class consumers in emerging markets and the development of digital assets.
FinTech Collective supports companies working within the capital markets, wealth and asset management, banking, lending, payments and insurance industries. The firm invests into companies around the world and has currently backed 53 companies that span the US, Latin America, the UK, Europe and Africa.
FinTech Collective managing partner Brooks Gibbins said “FinTech Collective was among the first venture capital firms to recognize the fintech opportunity resulting from the global financial crisis, which served as a catalyst to unlock a generation of innovation in financial services.
“We believe the next 30 years represent an unprecedented period when every facet of financial services will be deconstructed and reconstructed, and our deep global roots, particularly in the New York and European ecosystems, allows us to take advantage of this tremendous opportunity.”
This fund puts FinTech Collective’s total assets under management at $500m. Its limited partners include The State of Wisconsin Investment Board, The Teachers’ Retirement System of the State of Illinois, Greenspring Associates and StepStone Group. Some of its newest LPs are institutional crypto investors in the US and Europe.
One of FinTech Collective’s most notable exits include Quovo to Plaid, Reorg Research to Warburg Pincus, and MoneyLion, which announced it will go public following a merger with SPAC Fusion Acquisition in a $2.9bn deal.
Around 20% of FinTech Collective’s current portfolio is made up of blockchain and DeFi companies, including five FinTech unicorns.
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