Fund focuses on software, cloud infrastructure, and data technologies that will bring increased efficiency and scale to highly regulated and complex industries
Conversion Capital, an early-stage venture firm, announced the closing of its oversubscribed and largest fund to date: a $122 million Fund III backed by leading institutions, family offices, and over a dozen founders. The new capital will fuel Conversion Capital’s investment into 25-30 pre-seed to Series A fintech companies building software, cloud infrastructure, and data technologies. Since 2015, Conversion Capital has funded more than 60 startups, leveraging deep domain expertise and a global network of early adopters to help unlock early growth and go-to-market channels for founders. The firm has begun deploying capital from the new fund across the fintech landscape and into adjacent industries undergoing structural transformation.
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Sole founder and General Partner, Christian Lawless, started Conversion Capital after leaving leadership positions in capital markets at Lehman Brothers and Nomura in both the U.S. and U.K. The firm was created with the underlying thesis that financial services infrastructure would be unbundled as companies inevitably move critical operating infrastructure to the cloud, unlocking access and product innovation, and ultimately transforming the entire industry.
“Twenty years ago, every company set out to become a technology company with the adoption of Web and mobile. Today, we’re seeing a continuation and acceleration of an even larger platform shift. As more and more companies move critical operating infrastructure to the cloud, operational efficiency is unlocked, which impacts every aspect of the global economy,” said Lawless. “The industries that drive our national GDP were slower to make this transition, but with Cloud 3.0 came advancements in security and functionality, and this represents an enormous investment opportunity. Those businesses that can scale, will win.”
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The firm deploys initial checks ranging from $500,000 to $5 million into pre-seed through Series A companies, with founder-led engineering teams. Conversion Capital’s proven track record from its previous two funds will inform investment direction and activity for Fund III:
- Portfolio: seed investor in Ramp, Vesta, Figure, Braid, Blend, Wisetack, Booster Fuels and others
- Follow-on Capital: $7 billion follow-on capital has been raised across its portfolio, and $35 billion total market capitalization created
- Exits: 17 portfolio company exits through acquisition or IPO
“We are focusing our capital on U.S. and U.K. based companies that stand to benefit from macro tailwinds and global decoupling,” added Lawless. “Our experience drives our conviction that the U.S. will remain the epicenter of innovation. Previous market corrections have proven we have the most resilient economy in the world.”
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