The Finstar Financial Group (Finstar), an international private equity group, is reportedly investing $150 million in financial technology start-ups d
The Finstar Financial Group (Finstar), an international private equity group, is reportedly investing $150 million in financial technology start-ups during the next five years.
The money are also to be used for in-house research and developent, as Finstar wrote on their official website.
Global investment in financial technology start-ups increased to 12,7 billion dollars last year, as the CB Insights Global Fintech Report stated in 2016. Finstar is making the investment in the hope to expand and improve its fintech offering, as they announced.
Commenting on the news, Oleg Boyko, the Chairman of Finstar, said:
“We will finance direct investment in startups, contributions to SMEs, and research and development of cutting-edge fintech within our own companies. As far as the startup component is concerned, we are targeting three to six deals per year, in the seed to Series A rounds, typically ranging from USD 500,000 to USD 30 million. Our R&D investment is about pushing financial technology further and leveraging that innovation across our already strong fintech portfolio.”
“This means that – beyond our financial commitment to the sector – the businesses we work with benefit from the strength of our technical resources and the depth of our expertise.”, he added.
Finstar Financial Group has started to work along European fintech companies like Spotcap, Euroloan, Viventor and Eocker10 over the past two years, as the company`s press release made clear.
Finstar has also expanded its collaboration with financial technology enterpreneurs through FinstarLabs. FinstarLabs is a project focusing on creating fintech, adtech and big data solutions, as well as incubating leading fintech start-ups and enterpreneurs.