Israel-based investment group Viola raised $100m yesterday from limited partners including insurance firm Travelers Companies and financial services firms Scotiabank and Bank Hapoalim for a dedicated financial technology fund.
The fund, dubbed Viola FinTech, will invest in startups around the world with a focus on those in Israel, the European Union and the Americas. Its goal is to accelerate the implementation and adaption of innovations by financial institutions.
Viola is an Israel-based technology orientated investment group founded in 2000 that is now managing more than $2.8 billion in assets. Viola FinTech, which is targeting $120m to $150m for its final close, will function as an independent fund within the group.
Daniel Tsiddon, founder and general partner of Viola FinTech, told TechCrunch it will act as a co-investment fund, either co-leading rounds or joining after a first institutional investor is in place. It will mostly take part in series A and B rounds, making initial investments between $3m and $7m.
Areas in which Viola FinTech is interested include companies using artificial intelligence to automate regulatory and compliance processes, as well as insurance underwriting, and data platforms and financial services for small and medium-sized businesses.
Ignacio Deschamps, group head of international banking and digital transformation at Scotiabank, said: “We are delighted to partner Viola Group to accelerate the bank’s digital transformation and work with the most promising fintechs across the globe.
“This partnership will allow us to access Israel’s innovation ecosystem including well-established cybersecurity and anti-fraud expertise by leveraging Viola Group’s unique entrepreneurial and operational expertise.”