We are very pleased to announce that we completed the first close of our new fund. As every entrepreneur knows, fundraising has its own very special challenges, so this is an important milestone ahead of our final close later next year. We are now officially “in business” and are looking forward to investing in post-seed, series A and series B startups in Europe and North America. In anticipation of our first close, we have already made three investments in early stage fintech startups via a short term warehouse facility.
As part of our investment activity, Pascal Bouvier, one of our co-founders, will relocate to Luxembourg and oversee all MGV European activities, while co-founder Michael Meyer will remain in Washington DC and oversee MGV’s US activities. Our third co-founder, Patrick Pinschmidt, will focus primarily on Europe.
No matter where we are based, the three of us will be spending a lot of time on the road. Over the coming months we look forward to meeting b2b and b2b2c early stage startups in Europe and North America that are reinventing digital assets, data management and core systems (amongst other things) across the key verticals in financial services.
Finally, a special thanks to all those who have helped us get to this point. We are looking forward to the next phase of our journey with our excellent base of LPs, service providers, and ecosystem partners across our broader network. We are very excited about the road ahead. It is a pivotal time to be a venture investor in the market looking to back the best teams with the best ideas.
Facebook’s consortium project, Libra, has the potential to disrupt traditional business models in retail banking, payments, and retail asset management (in addition to regulatory and monetary policy). While there are many variables that will impact how this will all play out and there are significant technology, privacy, regulatory, and security concerns that could stop this project in its tracks, a meaningful new front has opened up in the evolution of western financial services that warrants discussion.
The Next Wave Of Fintech Will Be A Tsunami vs The First Fintech Wave
(Editorial Note: This is a high-level, big picture post that might not be suitable for hardened financial technology geeks. Don’t worry, we’ll have more for you in subsequent posts.)
It used to be that financial services intermediaries were to a large extent immune to outside innovation. While entire industries have been obliterated or reimaged over the last 30 years by waves of technological innovation (think retail, entertainment, or travel), financial services has remained relatively unscathed. Yes, electronic exchanges have replaced physical trading pits, online brokers and ETFs have replaced stock brokers, and cards have largely replaced paper checks. But even today, despite the hype around fintech, the core systems, operations, and players (outside of payments) remain fundamentally the same. We do not believe this will be the case a decade from today.
We are very pleased to announce the launch of Nadifin, a new European fintech accelerator. Nadifin will be based out of Luxembourg and will offer a yearly accelerator program based on multiple workshops in different European cities.
Nivaura Poised for Growth Following $20m Strategic Seed Investment Round
Investors include Allen & Overy, Linklaters, London Stock Exchange Group, MiddleGame Ventures, Santander InnoVentures and Transamerica Ventures (a wholly owned Aegon subsidiary).
Pascal, Patrick and I are pleased to announce the MGV team publicly for the first time. You can read Pascal's blog post here for further details. We will announce further details on our fund, investment themes, ecosystem activities, specific investments, and added team members over the coming months. Stay tuned...
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