US-based financial services firm Capital One intends to launch a corporate venturing subsidiary that will make early-stage investments in financial technology companies, PeHUB has reported, citing two undisclosed sources.
Capital One will not be raising a dedicated fund for the unit and will instead finance any investments off its balance sheet.
Jaidev Shergill, currently Capital One’s head of digital products, is set to lead the unit. Shergill has also overseen digital venture investing and startup business development for Capital One since 2012, and was president of Citi Ventures, the corporate venturing arm of financial services firm Citigroup, from 2007 to 2009.
Capital One previously invested in startups through North Hill Ventures, the venture capital firm it was affiliated with until North Hill was spun-off completely in 2012. It does however operate Capital One Labs, a San Francisco-based research subsidiary that operates as a startup laboratory.