20 January 2018
visit www.ebaday.com

BBVA increases newly independent fintech venture fund to $250m

11 February 2016  |  13548 views  |  1 BBVA

BBVA is shaking up the way it invests in fintech startups, closing its $100 million in-house fund and pumping $250 million into a new independently managed outfit called Propel Venture Partners.

BBVA will invest $250 million - including the BBVA Ventures $100 million - as a limited partner in Propel, which will use the money to invest in a US and European fund, putting cash into fintech firms from its San Francisco headquarters and a London office.

BBVA took the then unusual step of launching its $100 million fund in 2013 and has used it to invest in digital lender Prosper, wealth management advisor Personal Capital and Taulia, an online cashflow management tool.

Propel will now manage these investments and hunt out new opportunities, with a focus on early to late stage investments in firms working in payments, credit, insurance, wealth management, e-commerce, security and compliance.

The new fund's managing partners are former BBVA Ventures managers Jay Reinemann and Tom Whiteaker, and newcomer Ryan Gilbert. Propel is also currently recruiting for its London office.

With several banks now running their own fund, BBVA hopes that it can gain an edge and attract startups by working through an independent entity.

According to TechCrunch, the BBVA Ventures fund was also restricted to investing a maximum of just five per cent in any round because it was structured as a small business investment corporation. This meant that large deals such as the recent acquisition of a 29.5% stake in UK challenger bank Atom had to be done through BBVA itself.

Teppo Paavola, chief development officer, BBVA, says: "In an increasingly competitive fintech venture capital environment, we believe that our increased capital, Propel's independence and a presence in London can enable us to invest in the best fintech start-ups and better support BBVA's vision of using technology to change financial services for the benefit of the customer."

Comments: (1)

Jean-Pierre Xiao-Min Wang
Jean-Pierre Xiao-Min Wang - IndiceA - Sophia-Antipolis, France | 11 February, 2016, 18:10

BBVA, Fintech venture... Using technology to change financial services for the benefit of the customer:

"It has become appallingly obvious that our technology has exceeded our humanity." – Albert Einstein

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Digital transformation driving earnings at BBVA

Digital transformation driving earnings at BBVA

03 February 2016  |  19542 views  |  0 comments | 50 tweets | 46 linkedin
BBVA hires Barclays digital chief Derek White

BBVA hires Barclays digital chief Derek White

11 January 2016  |  14993 views  |  0 comments | 26 tweets | 16 linkedin
BBVA buys 29.5% stake in Atom for £45 million

BBVA buys 29.5% stake in Atom for £45 million

24 November 2015  |  14006 views  |  1 comments | 34 tweets | 42 linkedin
Finextra Q&A: Jeff Dennes, chief digital officer, BBVA Compass

Finextra Q&A: Jeff Dennes, chief digital officer, BBVA Compass

28 September 2015  |  8630 views  |  0 comments | 9 tweets | 7 linkedin
BBVA Ventures exec joins Santander InnoVentures

BBVA Ventures exec joins Santander InnoVentures

17 June 2015  |  7889 views  |  0 comments | 5 tweets | 1 linkedin
BBVA buys UX firm Spring Studio

BBVA buys UX firm Spring Studio

16 April 2015  |  16261 views  |  0 comments | 39 tweets | 18 linkedin
BBVA acquires big data startup Madiva

BBVA acquires big data startup Madiva

10 December 2014  |  15199 views  |  1 comments | 25 tweets | 9 linkedin
BBVA Ventures invests in supply chain finance firm Taulia

BBVA Ventures invests in supply chain finance firm Taulia

26 September 2014  |  7308 views  |  0 comments | 4 tweets | 3 linkedin
BBVA buys Simple for $117m

BBVA buys Simple for $117m

20 February 2014  |  12011 views  |  1 comments | 11 tweets | 17 linkedin
BBVA sets up $100 million fintech venture fund

BBVA sets up $100 million fintech venture fund

25 January 2013  |  22536 views  |  1 comments | 12 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.capgemini.comvisit www.vasco.com

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
12423 views comments | 33 tweets | 38 linkedin
BofA leads on blockchain patentsBofA leads on blockchain patents
7827 views comments | 12 tweets | 12 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
7667 views comments | 14 tweets | 14 linkedin
hands typing furiouslyFintech Adoption is About People, Not Tech
6789 views 1 | 6 tweets | 2 linkedin

Featured job

Competitive base + commission
New York City, NY - USA

Find your next job