BBVA Allocates $150 Million to Support Fintech Venture Fund PropelFebruary 3, 2021
BBVA, a leading Spanish financial services firm, announced today that it is planning to invest as much as $150 million in new capital into fintech venture fund Propel Ventures Partners to support the innovation in the financial technology industry.
According to the official announcement, the recent $150 million investment will raise BBVA’s total commitment to more than $400 million. Out of the newly announced investment, a $50 million fund will be launched in the next few weeks followed by funds in 2022 and 2023, which will be open to outside investors.
Propel has been able to partner with some of the leading names in the industry, including Coinbase, Hippo, Guideline, Neon, and DocuSign. Since 2016, the portfolio companies of Propel have been able to create more than 10,000 jobs.
“Since its inception, Propel Venture Partners (PVP) has invested in more than 40 companies in five countries, including the United States, Mexico, and Brazil. The initial fund has already shown clear signs of success with two billion-dollar exits and several companies with valuations exceeding $500 million. According to CB Insights, the fintech sector has grown from $22 billion in 2016 to $40 billion in 2020. In 2020, the pandemic year, Propel’s portfolio companies raised over $1 billion in new financing,” the official announcement states.
Finance Magnates earlier reported about record fintech investments in 2020 despite the economic challenges created by the coronavirus pandemic. BBVA aims to take advantage of the growing fintech sector with the latest investment. The fund will be making investments in the early-stage startups planning to introduce innovative technologies in the financial sector. “Propel gives BBVA a privileged window into the fintech ecosystem. The excellent performance of the funds is coupled with lessons and experiences BBVA and the entrepreneurs have shared, helping to accelerate our overall transformation,” BBVA’s executive chairman Carlos Torres Vila said in a statement.
BBVA has been able to form strategic partnerships with tech giants such as Uber in Mexico or Xiaomi in Spain.
Source: Read Full Article