BankTech Ventures (BTV), an investment fund serving community financial institutions (FIs) and banking technology entrepreneurs, has raised $115 million to support innovation and return on investment for community banks and banking technology companies .
“The support and engagement we have already received from our community banks has been better than expected, which drives us to find the best banking technology companies in the market and to continue to develop this unique ecosystem that combines these technology companies. and these banks for synergistic benefits,” Ransom said.
Based in Sandy, Utah, BTV is a venture capital (VC) fund that aims to invest in technology companies that provide products to community banks. The partnership structure is made up of two community banks – Coastal Financial in Everett, Washington, and Sunwest Bank in Irvine, Calif. – as well as the Independent Community Bankers of America, the Venture Center and Hovde Group.
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The fund works to discover and support promising FinTech companies that would complement its financial institutional partners and also earn a return.
Ransom said he expects the BTV ecosystem to become a primary source of innovation support and outsized return on investment for community banks and FinTechs “for the foreseeable future.”
With six full-time employees and general partners across various FI innovators – community banks, investment banks, a leading banking technology accelerator and the industry’s largest advocacy organization – BTV’s fund is well supported with many sourcing opportunities, according to the statement.
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“Our vision was to take a different approach to investing in the future of community banking innovation with BTV. We are thoughtfully creating an ecosystem of LPs and holding companies that, when combined, can enable our LPs to quickly transform into leading community banks with improved customer experience, better marketing capabilities and a robust suite of internal and external solutions,” said Carson LapetitoGeneral Partner of BTV and President of Sunwest Bank.
“Our LPs and portfolio companies are seeing the exponential impact of this strategy and we are becoming a strategic and distribution partner for technology companies instead of just an equity partner,” Lappetito said.