Finch Capital raises €150m for fintech fund targeting later stage start-ups

The UK and NL-based VC firm Finch Capital’s Europe III will target firms at Series A and B stages.

Finch Capital, a UK and Netherlands based VC firm, is looking to deploy a €150m through its new fintech-focused fund into 15-20 fintech companies in Europe.

The new portfolio is Finch’s third fund since launching in 2013. Its current portfolio includes the likes of Trussle, Fourthline, Goodlord (which acquired Vouch), Grab, Hiber, BUX, Twisto, and Zopa. 

Since launch it has made about 40 investments across Europe and Asia with assets now at $400m.

Finch Capital says it is looking at funding fintech start-ups with €2-10m at Series A and B stages, acquiring significant minority stakes in firms with €2-5m in revenues. This segment, it says is currently underserved by the European VC market and is therefore facing a funding gap. 

As with its previous funds, Finch plans to back 15-20 European startups, targeting liquidity 3-5 years post investment, over the fund’s three year initial investment lifespan.

Radboud Vlaar (pictured), MD Finch Capital, said: “We have always been bullish on investing in financial technology. Moving forward, we are doubling down on financial software, especially those companies that leverage AI to this end," he said. 

"We have seen the industry mature, giving rise now to a rich but fragmented landscape of robust businesses with €2-5m 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,” he added.