Fund II represents a 15% increase in funds and a near-doubling of the Canapi Alliance from firm’s Fund I
Canapi Ventures (“Canapi”), the fintech venture capital fund backed by nearly 70 financial institutions and strategic investors across the United States, announced the raise of a $750 million Fund II. Canapi is backed by the Canapi Alliance, the fund’s unique network of strategic banks and financial partners institutions across North America, as well as institutional investors. This latest raise brings Canapi’s total assets under management to over $1.4B and will allow the Fund to continue to support the most innovative entrepreneurs and companies looking to create a sounder, more inclusive and equitable financial ecosystem.
Core to Canapi’s value proposition is the delivery of best-in-class financial and strategic returns to its Alliance. In Fund I, Canapi made 20 investments across key verticals, including fraud and identity, financial infrastructure, lending and credit, payments, and real estate technology. As part of these investments, Canapi has helped to facilitate nearly 100 partnerships between its LPs and portfolio companies – including such names as Alloy, Built, Thoropass, and Greenlight. Canapi estimates that this has delivered some $40 million in annualized revenue and supported the creation of nearly 1,500 new jobs in the fintech and financial services industry.
In Fund II, Canapi will maintain this considered strategy and support these key industries, while broadening its investment aperture to include additional opportunities and challenges facing the financial industry and other industries. This includes the responsible use and governance of AI, cybersecurity, and the intersection of financial services and climate technology. To that end, Canapi has made a handful of investments out of Fund II in companies such as DynamoFL, Island, and Crux Climate.
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“Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners, creating strong symbiotic value in this important ecosystem,” said Canapi Managing Partner, Gene Ludwig. “Our connectivity in Washington and to its regulators has allowed us to help our companies better understand and comply with complex requirements while building alongside founders to maximize impact.” Canapi Managing Partner Chip Mahan added, “We’re proud to work shoulder to shoulder with our teams, helping them to best serve their customers and their customers’ customers.”
Canapi will continue to invest in companies across stages, partnering with founders as early as ideation and continuing to provide value throughout a company’s lifecycle. The Fund has grown its platform team to include business development and talent professionals who collaborate with portfolio companies on key strategic imperatives. Canapi prides itself on doubling and tripling down on talented founders; to date, the fund has led eight companies through two or more funding rounds, and has participated in 100% of follow-on opportunities. Canapi also seeks to back diverse leaders who reflect the increasingly heterogenous financial landscape; to that end, 61% of C-suite members or founders in Canapi’s portfolio are either minorities, women, or veterans.
“Canapi has been an invaluable partner for Alloy. Canapi pitched us on their ability to bring banking and regulatory expertise to the boardroom and to increase the quantity and quality of our banking pipeline,” said Tommy Nicholas, co-founder and CEO of Alloy. “They have over-delivered on this promise, becoming one of our top lead generation sources and most trusted advisors. If you have a chance to get Canapi on your cap table, you have to take it!”
Canapi has also expanded its team and geographic footprint with the announcement of Fund II. The team – which has more than doubled in size since announcing Fund I – now has offices in New York City, led by General Partner Jeff Reitman, as well as San Francisco, led by General Partner Tom Davis.
“With decades worth of financial services experience, we provide our stakeholders with the knowledge and expertise they need to identify emerging innovations within the bank and fintech ecosystems. We’re proud to deliver not only financial returns to our LPs, but also strategic value that is transforming the fintech and financial services industry,” said Canapi President and General Partner Walker Forehand.
“Fintech is broader than ever, and financial services permeate the whole economy,” said General Partner Neil Underwood. “Every founder should have a fintech expert in their corner.”
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