Canapi Ventures, the fintech venture capital fund backed by nearly 70 financial institutions and strategic investors across the United States, announced earlier this month 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.”
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 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.”
As noted in the update, Canapi is a financial technology venture platform “investing in early to growth-stage companies offering disruptive alternatives to outdated business models and technologies.”