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(This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/04\/20\/vesey-ventures-closes-on-78m-debut-fund-to-back-early-stage-fintech-startups\/<\/a><\/br> After working together<\/span> for nearly one decade, three former managing directors of Amex Ventures in early 2022 branched out to form their own fintech-focused venture firm, Vesey Ventures. The trio had made early investments in more than 50 fintech companies, including the likes of Stripe, Plaid, Melio and Trulioo. During that time, they also helped engineer over 100 partnerships between startups and financial services institutions.<\/p>\n Their goal was to take that 10 years of experience investing through the venture capital arm of one of the world\u2019s largest credit card companies, and apply it firsthand to new early-stage investments \u2014 but with a twist. The firm says its intent is to go beyond term sheets to issuing bespoke \u201cStrategy Sheets,\u201d which outline how Vesey Ventures aims to leverage its network \u201cto act as a company\u2019s first business development team.\u201d In other words, it wants to invest in early-stage fintech and enabling technology companies \u201cwhere opportunities for early partnerships with financial incumbents exist.\u201d<\/span><\/p>\n And today, the firm \u2014 formed by founding partners and friends Dana Eli-Lorch, Lindsay Fitzgerald and Julia Huang, who all left AMEX Ventures at the same time in late 2021 \u2014 has announced the closure of its $78 million debut fund. They named the firm Vesey Ventures after the street where American Express has its headquarters in New York. (They declined to say whether Amex is a limited partner in the new fund.)<\/span><\/p>\n The feat is particularly impressive considering that, according to PitchBook data recently cited by <\/span>The Information<\/span><\/a>, <\/span>\u201cfemale-led venture firms in the U.S. have raised only $74 million this year.\u201d This means that in closing its debut fund, Vesey has effectively raised more than all female-led venture firms in the U.S. combined and more than doubled the amount raised by female-led VC firms so far in 2023. <\/span><\/p>\n Vesey\u2019s self-described mission is to back companies \u201ctransforming financial services\u201d at the seed to Series B stages. It plans to invest $1.5 million to $3 million as initial checks, and larger amounts for follow-ons. Based in the United States and Israel, the fund has so far backed five startups, including <\/span>Coast<\/span><\/a>, <\/span>Cyrus<\/span><\/a>, <\/span>Grain<\/span><\/a>, <\/span>Equi<\/span><\/a> and <\/span>Proper<\/span><\/a>.<\/span><\/p>\n Vesey defines fintech in its broadest sense \u2014 meaning that it invests outside of traditional categories of financial services such as consumer and B2B, said Eli-Lorch in an exclusive interview with TechCrunch. It also looks at vertical software, embedded fintech, the future of commerce and the infrastructure layer \u2014 basically, cybersecurity, risk and compliance, or, as Eli-Lorch describes it, \u201call that back office operations of financial services.\u201d<\/span><\/p>\n \u201cAnother lens that we take is basically any type of technology software innovation that sells into financial services, meaning either financial institutions or fintechs,\u201d she said.\u00a0<\/span><\/p>\n The founding partners all agreed on one thing when starting the new firm: that it was clear that startups with better business development strategies had better outcomes.<\/span><\/p>\n \u201c<\/span>And that\u2019s ultimately the insight that we built a thesis on,\u201d said Fitzgerald. \u201cIn this industry, this development is not a \u2018nice to have,\u2019 it is a \u2018need to have.\u2019 \u201d<\/span><\/p>\n \u201cThe traditional corporate VC model can be limiting, though, so we saw an opportunity,\u201d she added. \u201cWe took the best of what was clearly working \u2014 business development, our team, our network \u2014 including other VCs and angels, and expanded on it\u2026to sort of bridge the gap between companies in need of new technologies and the startups building those new technologies.\u201d<\/span><\/p>\n Today, the partners recognize an interesting phenomenon taking place \u2014 senior execs of what they describe as \u201cgen one\u201d fintech startups. <\/span>And, despite the recent volatility the fintech space has seen in the past couple of years (funding was down significantly in 2022 compared to the heyday of 2021), Vesey is naturally \u201clong-term bullish\u201d on fintech.<\/span><\/p>\n \u201cYou only need to look at the past quarter of volatility and upheaval in the financial services industry to really reference that there are many, many problems that still need to be solved,\u201d Huang told TechCrunch. \u201cHaving said that, things are cyclical\u2026it\u2019s like when the tide goes out, you see who\u2019s sort of naked right? And for us, that is the infrastructure layer\u2026that we always help our companies build and reinforce so that they can become trusted financial institutions for the long term. That has become a really important pillar, and now it\u2019s back in vogue.\u201d<\/span><\/p>\n Huang also acknowledges that in 2021, the trio stepped back from investing \u201cbecause it was getting way too frothy.\u201d<\/span><\/p>\n \u201cEvery company was sort of a \u2018me too company,\u2019 she recalls. \u201cSo we decided to take a step back and think about our value proposition and what has legs and what doesn\u2019t.\u201d<\/span><\/p>\n Vesey intentionally chose to be on the ground in Israel (<\/span>Eli-Lorch is based there)<\/span>, a market the partners view as being home to one of the world\u2019s fastest growing tech hubs, with many companies focused on fintech, enterprise software, cybersecurity and data. It aims to help startups there partner, expand and commercialize in the U.S.<\/span><\/p>\n The new firm is staying mum about its LPs, saying only they include seven \u201cvery prominent financial institutions,\u201d as well as founders and executives from financial incumbents, family offices and institutional investors.\u00a0<\/span><\/p>\n Want more fintech news in your inbox? Sign up <\/span><\/i>here<\/span><\/i><\/a>.<\/span><\/i><\/p>\n
\nVesey Ventures closes on $78M debut fund to back early-stage fintech startups<\/br>
\n2023-04-20 22:02:48<\/br><\/p>\nBridging a gap<\/strong><\/h2>\n