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News > Private Equity > Fundraising

Velocity Capital closes €105m FinTech Ventures Fund and sees opportunities in SSA

Anna Lyudvig
June 24, 2019, 12:31 p.m.

Word count: 353

Velocity Capital has raised €105m for the FinTech Ventures Fund dedicated to backing early stage fintech companies that advance how people, businesses, and financial institutions grow economic opportunity.

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Velocity Capital has raised €105m for the FinTech Ventures Fund dedicated to backing early stage fintech companies that advance how people, businesses, and financial institutions grow economic opportunity.

“The fund is closed, all funds have been raised from Dutch family offices,” Allard Luchsinger, Partner at Velocity Capital Fintech Ventures, told Africa Global Funds.

Velocity’s FinTech Venture Fund already includes a portfolio of innovative companies transitioned from Velocity Capital Private Equity that address major barriers and inefficiencies in banking, credit, payment, insurance, money management, and investing.

The firm is looking to round out its evergreen fund with new breakthrough solutions in these and other high-growth fintech areas.

The Fund invests between €2m and €5m in Series A, according to Luchsinger.

He added that they see opportunities in the “fintech space across Sub-Saharan Africa”.

When asked about how many companies they are planning to acquire, Luchsinger said that they don't know how large the fund will be or how many investments they ultimately will make.

“It is an evergreen fund, that will recycle proceeds and will grow with the exits we do,” he said.

Because Velocity’s partners have been founders, CEOs, and operators of companies in highly regulated B2B and B2C industries, they offer their portfolio companies the experience and know-how to help navigate those complex landscapes.

Joining Allard Luchsinger in the management of the fund are Willem Willemstein, general partner & founder of Velocity Capital and former FinTech founder and CEO Don Montanaro.

“At Velocity, we are interested in funding founders who demonstrate a vision for applying FinTech to improve the human experience, the tenacity to make it a reality no matter what, and a business model that is already showing traction,” said Willemstein.

“This founder-first approach is something we strongly believe in and one that has always served us well.”

“While we seek fast growth where possible, we also recognize the realities of business and have structured our fund differently to have the capacity to be patient. We care more about preparing and supporting our founders to run big companies than about a ticking clock,” added Willemstein.

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