New Venture Capital Fund to Target Fintechs Working with Banks

Jan 22, 2020FinTech, News

Earlier today, Gene Ludwig, who served as Comptroller of the Currency under President Clinton from 2993 to 1998, and Chip Mahan, CEO of Live Oak Bancshares, announced a $545 million investment fund which aims to target the fintech sector. The fund is under the banner of Canapi Ventures, which was launched in 2018.

Per the announcement, Canapi will target “entrepreneurs building enterprise solutions for the financial services industry of the future.”

35 banks in the United States, in addition to the American Bankers Association, Independent Community Bankers of America, and several state banking associations, are supporting the fund.

“Much of the financial services industry is running on software created decades ago, and we are at an inflection point where that has to change,” Mahan said. “Canapi is here to connect banks to the innovators who aim to make that change happen and truly revolutionize the fundamentals of our industry.”

“Banks are looking for technology partners that can help them thrive and innovate in a rapidly changing and hyper-competitive market,” Ludwig added. “We believe many of these solutions have to come from early stage companies and that is why we launched Canapi Ventures.”

“The best early stage company founders seek investment partners who not only provide capital but possess deep domain expertise and an ability to help fintech companies tangibly grow revenue and customers,” Ludwig continued. “We believe that our model is unique in that it aligns the interests of both banks that want to use innovative technologies as well as the companies creating those technologies and represents a true ‘win-win’ for all parties involved.”

Both Ludwig and Mahan are co-managing partners of the venture.

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