Venture capital firm Canapi Ventures announced $545 million in funding that will serve as its inaugural venture capital funds, gleaned from a sizable investor base. Canapi Ventures, which specializes in early to growth-stage FinTech companies, will be working to provide funds to a new generation of businesses in the financial services industry.
Among the investors is a collective called Canapi Alliance, which is made up of more than 35 banks and investors looking to strategically put stakes down in the FinTech field. The alliance includes 11 of the top 50 banks and 23 of the top 100 banks in the U.S., as measured by asset size.
With more than 20 million customers across 45 states, the alliance represents a large potential distribution network that could be advantageous for Canapi. It also counts the American Bankers Association, the Independent Community Bankers Association and several state-banking associations among its financial sources.
Managing Partner Gene Ludwig said that the formation of Canapi Ventures had come from a belief that early stage companies are crucial to the future of the market, and can help banks and other such institutions as they develop. Ludwig added that he wanted to align the interests of both banks and the companies to which they’ll be lending, in a beneficial partnership for all involved.
Chip Mahan, also managing partner, said the urgency of its mission was visible through the fact that most of the financial sector is running on software from decades ago. He noted that things had simply reached a point where it was necessary to change and revolutionize the industry.
Canapi, launched in 2018 with 11 employees, saw its first investment last year when it provided funds to Built Technologies, which specializes in cloud-based software for the construction industry. The firm isn’t alone in targeting the FinTech industry, as companies like IKEA and H&M have gotten in on the game, and governments across the world have begun working with investors to look to the future.