Switzerland-based banking software provider Avaloq has launched a corporate venturing subsidiary called Avaloq Ventures to fund financial technology developers.
Founded in 1991, Avaloq provides digital and core banking software to banks and wealth managers including HSBC, Deutsche Bank, Barclays and Edmond de Rothschild.
The size of Avaloq Ventures’ investments will differ on a deal-by-deal basis and the fund will partner with banks, wealth and asset managers and established fintech producers to provide funding.
The firm said it will enable fintech startups to offer their products on Avaloq’s software exchange and will continue to target M&A deals while funding companies through Avaloq Ventures.
The fund’s formation comes after Avaloq paid an undisclosed amount for a 10% stake in Switzerland-based blockchain and cryptocurrency technology developer Metaco in April this year.
Avaloq Ventures will be led by CEO Minho Roth, the founding partner and former chief executive of wealth management business FiveT Capital, while Avaloq founder and chairman Francisco Fernandez will also chair the fund.
Roth said: “We will look to identify, fund and support the most innovative startups and companies with the greatest growth potential. They will be able to leverage their access to Avaloq’s client community of more than 150 banks and wealth managers worldwide.”