$23 Million Fintech Startup Fund Established by Accion Venture Lab
For the past five years or so, the Fintech sector has grown at a breakneck pace and has quickly become a multibillion-dollar industry spread across the world. The easy availability of data, the advancements in technology and the innovative ideas of a range of Fintech startups have made the industry what it has become. However, the growth is going to continue for the foreseeable, and hence it also represents an excellent opportunity for investors to cash in on the growing industry. In a new development, it has emerged that Accion Venture Lab, which is the investment division of the not for profit Accion, has decided to launch its Fintech startup fund. The Accion Venture Lab is primarily involved in seed investment in startups, and according to a press release, the new fund will do the same with regards to investments in Fintech startups.
The $23 million fund is known as the Accion Venture Lab Limited Partnership. Plenty of big-ticket investors have participated in funding this new venture from Accion, and some of the key investors include Visa Inc and Ford Foundation, among others. According to the press release, the new fund will be open to investment in startups located in any part of the world as long as the company meets the specific requirements. The company stated that although it has not earmarked its investment quote with regards to the region, it intends to invest 25% to 30% of its capital in startups located in Africa.
Tahira Dosani, who is the Managing Director of Accion Venture Lab, stated,
We want to continue to focus on Latin-America, on Sub-Saharan Africa, on Southeast Asia as well as in the U.S. It really is about…where we see the need and the opportunity across the markets that we’re in.
Financial inclusion is perhaps one of the biggest challenges that are being faced by the emerging economies in Asia and Africa. Experts believe that the establishment of Fintech could prove to be a boon as it could spread within a population only through a smartphone and cheap data. That is where the scope of Fintech lies, and investors quickly realize that. Dosani added,
Our goal is to really be that first institutional investor in the companies we invest in. That’s were we see the biggest capital gap. And it’s where we build capability and expertise.