Group 11 reports that it has raised $120 million in a “vastly-oversubscribed first closing” for its Fifth Fintech Fund.
The VC says it will invest primarily in Silicon Valley-based Fintech software companies often related to Israel through their founding teams and R&D centers.
Previously, Group 11 noted that approximately the majority of its portfolio is Israeli-related.
Founded in 2012 by managing partner, Dovi Frances, Group 11 has backed Fintechs like TripActions, HomeLight, Next Insurance, Sunbit, Tipalti, Papaya Global, EquityBee, and Lili Bank. SoFi is a portfolio company that is one of its exits. Tipalti recently booked a $5 billion valuation. Papaya raised $100 million at a $1.2 billion valuation
Group 11 Fund V is said to be anchored by institutional investors Migdal Insurance and Harel Group, who were joined by Menora Mivtachim Insurance, More Investment House, Hachshara Insurance Company, True Capital Management, and other US and Israeli based family offices.
Dovi Frances, Managing Partner of Group 11, said that since its launch a decade ago the impact of Fintech has been transforming traditional financial services firms:
“The Covid pandemic has further accelerated the Fintech Cambrian Explosion and we expect this digitization renaissance to last for decades to come. Group 11 has been fortunate to be at the forefront of this revolution as a partner of choice for many founders of young companies that over the past few years have evolved to become category-defining unicorns. While we invest predominantly in US Fintech based companies, about 70% of our portfolio has emerged out of Israel with Israeli founders at the helm and R&D presence in Israel so naturally we are very pleased to welcome Israel’s largest institutional investors into the Group 11 family.”
Frances also noted that Group 11 will become accessibleand tradable as the first venture fund that offers its membership units on the Tel Aviv Stock Exchange (TASE), where Israeli institutional investors and Israeli accredited investors can trade ownership.
Guy Fischer, Chief Investment Officer and Deputy CEO of Migdal Insurance Company, stated:
“Following our announcement of our new FinTech investment arm, With 1.5-2 billion dollars to deploy in the next 2 years. It was natural for us to invest and partner with Group 11 and its impressive pipeline of FinTech investments. We are also proud to be the first investor in the innovative, publicly trade, TASE UP”
Group 11 reports over $400 million in assets under management.