Established in 2013 and headquartered in Amsterdam, Finch Capital plans to direct funds toward European technology businesses involved in shaping “the future of finance” by deploying sophisticated and advanced technologies like AI (artificial intelligence).
The firm currently holds a record of 40 investments across the Asian and European markets, with an estimated USD 400 million in assets under management. Its portfolio is a blend of start-ups in fintech, regtech, and insurtech. The venture capital’s two prior funds, Europe I and Europe II, both are generating top-quartile returns.
Financing the future
The venture capital firm takes pride in its strong leadership, made of exceptional entrepreneurs. Furthermore, the company makes use of industry insights and international networks to add to its fledging investments into the finance space. Significantly, Finch Capital chooses enterprises that demonstrate pragmatic solutions to common problems and accentuate growth and sustainability.
The master plan
Finch Capital plans for Europe III are to invest in 15 to 20 start-ups on the continent. The investment bracket will fall between EUR 2 million and EUR 10 million in Series A and B funding rounds.
Radboud Vlaar, Managing Partner at Finch Capital, states, “We have always been bullish on investing in financial technology.”
He adds, “We have seen the industry mature, giving rise now to a rich but fragmented landscape of robust businesses with EUR 2–5 million in revenues. These are the companies we are focused on working with now. With the right support and management, they have great risk/return outcomes, and they are ready to build leading positions and consolidate the European market.”
Adding AI expertise
Finch Capital is strengthening its AI expertise by onboarding Steve Crossan to its ranks as a venture partner. Formerly employed as a Product Leader at Google and DeepMind, his knowledge in the tech space is absolutely valuable in directing Finch’s next series of funding.
Steve Crossan further explains, “Europe is ready to compete in the global enterprise tech arena, with more capital being deployed in AI/deeptech than any other industry – USD 20 billion last year alone.”
He added, “In the wake of general performance pressure, we see an acceleration of the finance sector in their tech understanding and adoption, creating pressure for additional innovation in these areas.”
2020- the year of pandemic, instigated a VC culture shift and continues to cause a variety of changes to investments.
Finch Capital’s significant focus on AI (artificial intelligence) within the finance domain could be crucial, states Steve MacDonald, an angel investor. He further mentions, AI will be the core element to every new breakout fintech business in 2021. This year truly will be one of the most exciting periods for the finance sector.