Nyca Partners, the venture capital firm focused on the FinTech market, raised $125 million for a second fund. According to a report, Hans Morris, the former Visa president turned venture capitalist, created Nyca Partners in 2014, launching a $30 million fund. The fund invested in a slew of FinTech startups, including Lending Club, SigFig and Orchard. The new fund, which includes 10 institutional investors and 29 limited partner advisors, has made investments in about a dozen startups, including Embroker and Ladder, two insurance FinTechs.
“By providing financial technology knowledge to early-stage companies, we are able to offer a unique and much-needed service. This is an exciting time for FinTech, and this latest fund will allow us to continue to invest in companies that leverage technology to build platforms that empower consumers,” said Morris.
Nyca Partners isn’t the only one eyeing the FinTech market. Fifth Third Bank said earlier in the month it wants to introduce new FinTech innovation into its lines of service and has announced a collaboration with FinTech investors to make it happen. The bank said it’s partnering with venture capital firm QED Investors to seek FinTech startups and integrate their solutions into the bank.
“There is an unprecedented amount of innovation emerging in all parts of the financial services ecosystem,” said Tim Spence, Fifth Third executive vice president and chief strategy officer, in a statement. “Our partnership with QED should enable us to identify new, high-potential technologies to complement our internal R&D and innovation efforts.”
QED is also an investor in AvidXchange, as well as CAN Capital, Flywire, Fundera, Credit Karma, LendUp, Prosper and other FinTech startups, many of which are in the B2B payments and alternative lending space.