Fund VIII will Invest in Early Stage Businesses; Growth II for Later-Stage Fintechs
Leading global fintech venture capital firm QED Investors announced that it has closed two new funds with combined capital commitments of $925 million.
The new capital commitments comprise Fund VIII, an oversubscribed $650 million early stage fund, and Growth II, a $275 million early growth-stage fund. These funds will allow QED to continue to invest in disruptive fintech companies in the U.S., the U.K. and Europe, Latin America, India and Southeast Asia and Africa.
“We are excited, fortunate and privileged to be a steward of our investors’ capital,” said QED Investors Managing Partner and Co-Founder Nigel Morris. “We don’t take that responsibility lightly, especially in this difficult market.
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“QED has been working intentionally to achieve what we believe is threshold scale in terms of capital, team, skills and brand globally. We are proud to have a world-class team that combines proven operational DNA, experience through multiple economic cycles and the right decision-making frameworks for the current environment.
“Growth at all costs will not win the day in this business cycle. Unit economics, product-market fit and clear paths to profitability are the keys to survival, and QED is uniquely positioned to support our companies with the best advice in fintech.”
Founded in 2007 by Nigel Morris and Frank Rotman, QED has invested in more than 200 companies – including 28 unicorns. With these two new funds, QED will have more than $4.0 billion under management. It is known for its singular focus on fintech and the team has more than 250 combined years of operator experience. QED works side-by-side with CEOs and founders, applying a rigorous, hypothesis-driven approach that identifies investment opportunities that are able to create breakthrough companies at scale.
Added Morris: “We thank our returning LPs and we are grateful for the confidence shown in us by our new LPs. We’re excited to have the capital to build the next generation of great fintech companies over the coming cycle.”
QED has exclusively invested in fintech since its inception and has played a crucial part in the growth of some of today’s fintech behemoths. QED led the Series A rounds of Credit Karma, Remitly and Nubank, led AvidXchange’s Series B, participated in Klarna’s Series F, and was among the first institutional investors in Greensky.
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“QED are outstanding partners,” said ClearScore CEO Justin Basini. “They have been intimately involved in every stage of The ClearScore Group, from founding, to start up, through scale up, to now a group of companies serving 20 million users on four continents. Their deep insight, frameworks for thinking, operational experience and emotional support over the years has been invaluable to our success. They are undoubtedly one of the leading fintech investors today. From the highs of the past decade to the lows, we couldn’t have wished for a better partner as we focus on delivering value around the world for our users, our investors and our team.”
Matt Oppenheimer, CEO of Remitly, said: “As an early investor in Remitly, QED has been an invaluable partner through critical phases of our business growth. As Remitly has evolved on our journey to transform international payments for immigrants and their families, QED has been a steady force offering strategic guidance, inspiring long-term focus and encouraging a fail-fast and learn mentality. We’re tremendously grateful for their partnership which has seen Remitly grow from a Series A startup to a key player in the payments space, serving millions of customers at scale, and significantly outpacing the overall growth in the remittance market.”
Added Creditas CEO Sergio Furio: “QED has been present in Creditas since our early days eight years ago. More importantly, they have been essential in the building of our competitive advantage in secured lending. Bill Cilluffo and Nigel Morris have been instrumental in all these years, true partners and always willing to support us in our journey.”
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