US-based venture capital firm Canapi Ventures launched its first funds yesterday having raised $545m in capital from limited partners including several financial services firms.
The firm’s LPs are made up of more than 35 banks and strategic investors and incorporate 23 of the 100 largest banks in the US by total asset size, as well as trade boards including American Bankers Association and Independent Community Bankers Association.
Canapi Ventures will invest in early to growth-stage financial technology developers, providing them with distribution leverage through its LPs. Its advisers include Canapi Advisors, a wholly-owned subsidiary of banking group Live Oak Bancshares.
The close came after the firm began investing. It took part in a $31m series B round for construction-lending platform operator Built Technologies that closed in April 2019. It was also listed as a participant in smart debit card provider Greenlight Financial $16m series A round in early 2018.
Gene Ludwig, co-managing partner of Canapi Ventures, said: “Banks are looking for technology partners that can help them thrive and innovate in a rapidly changing and hyper-competitive market. We believe many of these solutions have to come from early stage companies and that is why we launched Canapi.
“The best early stage company founders seek investment partners who not only provide capital but possess deep domain expertise and an ability to help fintech companies tangibly grow revenue and customers.
“We believe our model is unique in that it aligns the interests of both banks that want to use innovative technologies as well as the companies creating those technologies and represents a true ‘win-win’ for all parties involved.”