Flourish Ventures, a forward-thinking fintech venture fund, has announced the successful raise of $350 million in fresh capital, bringing its total assets under management to $850 million. The fund, known for its mission to support companies that can create systemic change and build a fairer financial system, focuses on investing in early-stage fintech startups in both US and emerging markets.
Key Takeaway
Flourish Ventures secures $350 million in new capital, totaling its assets under management to $850 million. The fund aims to support fintech startups that can bring about systemic change and build a more equitable financial system.
A Unique Approach to Investment
Unlike traditional venture firms, Flourish Ventures operates as an evergreen fund, meaning it has no fixed end date for investing. Its sole limited partner is philanthropic investment firm Omidyar Network, led by eBay founder Pierre Omidyar. The fund’s permanent capital allows for greater flexibility in deploying investments and avoids the pressures associated with fixed timeframes.
Flourish Ventures’ investment thesis goes beyond seeking commercial returns. It actively seeks out companies that demonstrate new or improved ways of conducting business and can influence the entire financial sector positively. This purpose-driven approach sets the fund apart, aligning its investments with its commitment to building a fairer and more inclusive financial system.
Notable Investments and Exits
Over the past four years, Flourish Ventures has backed 71 startups across five continents. Its portfolio includes impressive companies such as Chime, a digital bank valued at $25 billion, Brazilian neobank Neon valued at $1.6 billion, embedded finance startup Unit valued at $1.2 billion, and African payments infrastructure firm Flutterwave valued at over $3 billion.
The fund’s strategic investments have also shown successful exits. Grab Financial went public via SPAC, Ruma was sold to GoJek, SeedFi was acquired by Intuit, and United Income was sold to Capital One. These exits demonstrate the fund’s ability to identify startups with significant potential for growth and impact.
A Focus on Systemic Change
Flourish Ventures partners with policymakers, regulators, industry leaders, and ecosystem players to drive systemic change. By collaborating with organizations such as Alliance for Innovative Regulation, Financial Health Network, and Consumer Reports, the fund advocates for policies and initiatives that promote financial inclusion and innovation.
The managing partners and founders of Flourish Ventures focus on different regions. Tilman Ehrbeck leads investments in India and Southeast Asia, Emmalyn Shaw focuses on the US market, and Arjuna Costa concentrates on emerging markets such as Latin America and Africa.
Future Strategies and Investment Focus
With the recently raised capital, Flourish Ventures plans to continue its mission of supporting fintech startups and driving transformational change. The fund will reserve a portion of the new capital for follow-on investments, typically providing initial checks ranging from $2 million to $7 million per startup.
Flourish Ventures aims to lead or co-lead investments when appropriate and actively participate in the strategic guidance of its portfolio companies. The fund’s current focus includes infrastructure investments and backing next-gen companies in B2B payments and vertical SaaS spaces, further embedding finance into various industries.
The fund also recognizes the need for transforming legacy infrastructure and is committed to tackling this challenging problem for massive systemic change. Additionally, Flourish Ventures is exploring opportunities in data analytics across banking, insurance, payments, lending, and identity to drive innovation and improve financial services.
Commitment to Diversity
Flourish Ventures prides itself on maintaining a diverse team, with a majority of employees being female and non-white. The fund is equally committed to investing in diverse startups, although defining diversity varies across different parts of the world. In recent deals, all four of the fund’s new investments have female co-founders, reflecting its dedication to promoting gender diversity in the fintech space.
The capital raise by Flourish Ventures is a positive sign for the fintech industry, which has experienced a slowdown in funding compared to previous years. With its evergreen fund structure and purpose-driven approach, Flourish Ventures is well-positioned to make a lasting impact and drive innovation in the global fintech landscape.
