Venture Capital firm FinTech Collective has raised capital of $250 million into two parts. The first part, which contains $200 million, will be used to fund early-stage investments, whereas the remaining $50 million is dedicated to financial protocols, decentralized apps, and smart contracts that use open-source technologies. The VC firm will be implementing this investment strategy in the coming months while maintaining its focus on early-stage developments in the centralized and decentralized finance space.
FinTech Collective continues to work with traditional fintech solutions and experimental spaces. For instance, it has helped people build groundbreaking solutions within the centralized finance sector while also nurturing the development in the DeFi space. With the new funding at its disposal, FinTech Collective plans to take the following steps. For instance, the DeFi strategy for the company will focus on equity and liquid tokens. However, the firm will also assist organizations that want to design protocols and standard systems for the upcoming Decentralized Finance space.
20% for DeFi and Blockchain
The company did allocate half of this fresh capital infusion to DeFi. As it happens, only 20% of the combined capital will be used for the DeFi space. It is unclear whether FinTech Capital will change this strategy in the future. It could be seen as an indication that the FinTech investment firm does not want to miss the opportunities from the DeFi space even when it primarily focuses on reinventing the traditional FinTech space. As for the rest of the capital, the VC firm plans to back entrepreneurs and businesses that want to change how money moves through the world. Its investment strategy provides equal importance to diversified asset management, working with banking systems, and insurance.
About FinTech Collective
FinTech Collective started its investment operations back in 2012 when the DeFi space was in early development. However, the VC firm is now being led by people with years of experience in the FinTech space. The managing partners of the VC firm, Brooks Gibbins and Gareth Jones, have together worked with four FinTech businesses, cumulating more than $1.5 billion in value. The management team has performed at the top of FinTech Collective, which has investments in 53 firms. These firms are located in the US, the UK, Europe, and Latin America.
FinTech seems to have a clear plan for the future. Even though the firm has dedicated only 20% of the funding to DeFi and blockchain, it plans to invest in some of the successful firms in the industry. The press release also notes that FinTech Collective has invested in companies with an incredible hit rate of 96%. The managing directors also add that they are ready for the next 30 years when expecting a deconstruction and reconstruction of financial services across the market. It needs to be seen how the strategy turns out considering the increasing demand for DeFi services.