Big News for £132M Fintech Fund Closed by Finch Capital to Invest in Series A and B
Finch Capital recently announced the close of their £132 fund, Europe III. The Amsterdam and London based fintech plans to invest in European technology companies, in order to help shape the future of finance through artificial intelligence (AI), and the like.
Series A & B Stage Investments
As they have with previous funding, Finch Capital will back 15-20 European startups, over the fund’s three year investment lifespan – targeting liquidity 3 to 5 years after their initial investment. By investing £2 to £10M at series A and B stages, they will acquire significant minority stakes in companies with revenues upwards of £2 to 5M. This is a rather underserved segment by the European VC and Growth market, which currently faces a gap in overall funding.
Since Europe III’s inception back in 2013, Finch Capital created a total of 40 investments throughout Asia and Europe. Europe III experienced nearly 90% follow on investment from previous funding, raising the firm’s assets to nearly £290.5M. With Fund II invested in European and SE Asian based startups, Finch is observing generations of top returns on a quarterly basis. The current portfolio includes, in no particular order, various Fintech companies including: BUX, Fourthline, Goodlord, Grab, Hiber, Insurtech, Twisto, and Zopa. Exits include Cermati and Salviol, which are in the process of multiple exit strategies.
The Addition of a DeepMind & Google Alum
Joining as a venture partner in order to increase the firm’s expertise on AI, Steve Crossan has previous experience at both DeepMind and Google.
“Europe is ready to compete in the global enterprise tech arena, with more capital being deployed in AI/deeptech than any other industry ($20B in the last year). In the wake of general performance pressure, we see acceleration of the Finance sector in their tech understanding and adoption creating pressure for additional innovation in these areas” he said.
A Machine Learning AI Tool
Flowrence was launched in 2020, as a proprietary Machine Learning AI tool which supports high quality deal sourcing and overall deal flow. Nearly 20% of the firm’s shortlist deals over the last six months were sourced by Flowrence. This was an especially helpful tool during a stretch of limited to restricted in-person meetings and travel.
The firm launched a £36M Finch Capital SEA for SEA Asia investments. This is in addition to Europe III’s launch, which will raise capital, despite Covid, from institutional investors, alongside around 20% from Family Offices from around Asia, Europe, and the US. In the next few months, Finch Capital SEA II will hold its first close, following the announcement of Arive (a part of MDI), and a top SE Asia bank partnership investments.
Touting a firm track record of backing future champions, Finch Capital historically financially backed startups such as Grab, Brickblock, Twisto, and Fourthline. Their 12 investment professionals act as a team, contributing a broad collection of industry backgrounds, in addition to entrepreneurial experience, as well as investment experience.