Frankfurt-based CommerzVentures, an investor in early and growth-stage companies in the financial services and insurance sectors, announced on Tuesday that it has launched its third fund at €300M. This brings the total funds managed by the company to €550M.
CommerzVentures’ third fund follows its first €100M fund launched in 2014 and its second €150M fund in 2019. The company has invested in 28 companies to date.
Speaking on the launch of Fund III, CommerzVentures partner Heiko Schwender says, “Over the past eight years, our team has leveraged our extensive experience to back founders reimagining the financial services industry across Europe, the US, Israel, and Africa.”
“We are proud and grateful to our portfolio of companies we have worked alongside, now including almost a dozen current and future unicorns. With our third, €300M fund, we are thrilled to continue establishing CommerzVentures as one of most successful early-stage FinTech VCs with roots in Europe,” adds Schwender.
Fund utilisation
According to CommerzVentures, the fund will back early and growth-stage companies in the fintech and insurtech sectors, as well as the emerging climate fintech space.
Speaking on the carbon offset commitment, CommerzVentures partner Paul Morgenthaler says, “As the pioneering investor in European climate fintech, we feel an obligation to support all our portfolio companies on their path towards carbon neutrality. With our access to carbon offsetting projects, we can help them to make credible net-zero commitments, while working on emission reductions. In the growing war for talent, this is a powerful tool for startups to attract the best people to their ranks, and serve as role models for the broader venture ecosystem.”
CommerzVentures says that the funds will also help grow its headcount by 50 per cent, enabling it to strengthen its position in fintech globally and establish a foothold in new geographies, notably Africa. This comes after the firm’s recent investment in MFS Africa’s $100M Series C round and desire to support founders in the region’s vibrant fintech market.
Investing in next-generation financial technology companies
Founded in 2014, CommerzVentures is a specialist fintech investor with €550M under management. Its initial investment size ranges from €2M to €10M and invests mostly in Europe, Israel, and the US.
The firm says it has seen 30 per cent of its early investments develop into unicorns – Bought By Many and Mambu, and includes two decacorns – eToro and Marqeta. CommerzVentures has also invested in climate fintech companies ClimateView and Doconomy. Other investments within fintech and insurtech include Afilio, ByMiles, GetSafe, and iwoca. Its portfolio company Marqeta IPOed on Nasdaq, while Curv and Payworks were acquired by Paypal and Visa, respectively.
Closely managing all three funds, CommerzVentures says its team will continue to demonstrate their position at the forefront of fintech, aligning interests with portfolio companies by continuing their policy of personal co-investments into the funds.
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