Wellstreet today announced the launch of its new fintech fund with an expected total of approximately US$40 million.
Backed by executives from major Nordic banks and fintech companies such as Avanza, Collector, Handelsbanken, Swedbank, Northmill, Resurs and Klarna, the venture capital fund was created to increase efficiency across the global financial and banking ecosystem. To achieve this goal, Wellstreet plans to make up to 20 investments in early-stage B2B infrastructure and service technology providers with global business models and innovative solutions.
The Fintech Fund is the second from our company, which was founded by former Klarna executive Mikael Wintzell. The company’s first fund, Wellstreet Ventures, closed with a total raise of approximately $20 million in 2020. Now fully invested in companies such as electric boat innovator X Shore, advertising technology provider DanAds and sportswear brand ICANIWILL, the fund has achieved a 70% return rate in just three quarters. Additionally, the success of the fund is generating interest in the portfolio companies from international industry players and financiers at a later stage. Wellstreet is planning a similar accelerated timeline for the Fintech Fund, having made its first two investments before the first close.
With an aggressive, hands-on approach that includes operational support as well as financial investment, Wellstreet has quickly established itself as a significant player in the Nordic tech scene and beyond. Our successful releases to date include digital electricity provider Tibber (backed by Founders Fund), live video shopping platform Bambuser (backed by Capital Group, Tenth Avenue and Harmony Partners, among others) and Checkin.com (one of the best IPOs in Sweden in 2021). We operate Scandinavia’s largest technology and innovation hub in Stockholm, The Factory, which includes Wellstreet Launchpad (in partnership with Google for Startups) and Fintech Loft (in collaboration with Amazon Web Services [AWS]).
The fund will be managed by Armando Coppola, who has a background at Avanza and Nordnet, among others. The investment committee is chaired by financial profile Ann Öberg. The fund has received significant support from several well-known financial profiles, including Lena Apler (founder of Collector), Hikmet Ego (co-founder of Northmill Bank), Ola Laurin (CEO of PayEx and chairman of Swedbank Hypotek), Kenneth Nilsson ( former CEO of Resurs Bank), and Hans Westin, (co-founder of Resurs Bank). The fund has also attracted corporate profiles such as Noel Abdayem (founder of The Humble Co.) and Konrad Bergström (founder of Zound Industries and X Shore).
All startups that receive investments from the Fintech Fund will automatically be part of the Fintech Loft, which will provide them with mentoring and coaching as well as credits from AWS to accelerate product development. With a global network of partners including banks (BNP Paribas, Crédit Agricole, Nordea) and accelerators (Level39, WEVE Acceleration [formerly NUMA New York]), Wellstreet also offers its portfolio companies access to spaces in more than 40 locations around the world to facilitate global scale.
“Banking is one of the most regulated sectors in the world and as a result it has not been able to keep pace with its less regulated fintech peers. Yet banking remains the backbone of the entire global financial system, so that its inefficiencies ultimately affect all other parts of the value chain,” said Armando Coppola, partner and fund manager at Wellstreet. “The Fintech Fund’s main objective is to help banks and other financial institutions adapt to new market norms and become more efficient, and we believe we will achieve this by investing in and supporting technologies and startups. in rapid development whose solutions meet the challenges of our existing financial infrastructure.