Finch Capital, a VC based in Amsterdam and London, has announced the first close of its €150 million fund, Europe III, which will go to fintech and AI companies shaping the future of finance. At the beginning of the pandemic, the firm released forecasts about how Covid might impact the sector, predicting that fintech enablers in AI and IoT will likely benefit from the (corporate) push to digitalisation. From this new fund, Finch will invest €2-10 million at Series A and B stages, acquiring minority stakes in scale-ups that have €2-5 million in revenue. The firm plans to back 15-20 European startups, targeting liquidity 3-5 years post-investment, over the fund’s three year initial investment lifespan.
According to a press release, Europe III has seen a near 90 percent follow on investment from previous funds. Since its inception in 2013, Finch has made a total of 40 investments across Europe and Asia and its assets now total $400 million. Cheques have gone to BUX, Goodlord (which just bought Vouch), Trussle, Twisto and Zopa. Exits include Salviol and Cermati with two more in progress.
Photo: Finch Capital co-founder Radboud Vlaar