Spain-based financial services group Santander spun off its corporate venturing subsidiary, Santander Innoventures, into a newly formed venture capital fund called Mouro Capital today, doubling its commitment to $400m in the process.
Santander Innoventures was formed by the bank in 2014 with $100m in capital, before its allocation was doubled to $200m two years later.
The unit has built a 36-strong portfolio including trade digitisation technology provider Tradeshift, consumer lender Creditas and mobile operating system Cyanogen that will henceforth be managed by Mouro Capital.
The switch means Mouro Capital will be managed autonomously, as opposed to being a direct subsidiary of Santander, though its investment team will make use of internal resources. It will provide about $15m for initial investments in early and growth-stage companies and is actively looking to lead deals.
Manuel Silva Martínez will head up the fund as general partner, having joined Santander Innoventures in 2015 before ascending to head of investments three years later. Chris Gottschalk, a principal at venture capital firm Blumberg Capital until 2019, will maintain his role as a senior adviser.
Silva Martínez, part of the 2018 GCV Powerlist, said: “By becoming more autonomous, we will gain in agility, attract entrepreneurial talent to the investment team and further align to our entrepreneurs’ success.
“We are eager to keep on delivering strategic value to Santander, enhancing our partnership and working with our portfolio companies to support the bank in shaping fintech innovation.”
Santander has also utilised the technology of several Santander Innoventures portfolio companies. The unit had secured three exits since being founded and has doubled the cash it has invested, according to Santander chairwoman Ana Botín.
OG Tech Ventures bought mobile payment technology producer MyCheck in March 2018, Paypal paid $2.2bn for care reader provider iZettle two months later and American Express acquired business lending platform Kabbage for $850m last month.
