QED Investors Closes Two Funds for Nearly $1 Billion to Invest in Fintech Companies

The venture capital firm, QED Investors, which has participated in rounds of Nubank, Credit Karma, and Klarna, among others, has mapped Latin America for future investments.

At a time when venture capital has decreased considerably for the financial technology (fintech) ecosystem, the investment firm QED Investors closed two new funds for $925 million, resources that will be used to invest in firms in the United States, United Kingdom, Europe and Latin America, especially Mexico.

This Tuesday, May 23rd, the Alexandria, Virginia-based firm announced that the closed commitments include Fund VIII, which would have up to $650 million, and Growth II, which is in a growth stage of $275 million.

This company led the Series A investment rounds of firms such as Nubank, Remitly, and Credit Karma, as well as the Series B of AdvisXchange and participated in the Series F of Klarna, in addition to being one of the first institutional investors in Greensky.

In Mexico, the firm participated in Covalto’s Series B, for which it raised just over $42 million. From 2007 to date, QED has invested in more than 200 companies, including 28 unicorns, with a special focus on the fintech segment.

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QED Investors will use the funds to further expand

According to the investment firm, the funds raised will be used to finance fintech companies in the United States, United Kingdom, Europe, Latin America, Southeast Asia, and Africa. The company confirmed to this media that Mexico will be one of the main destinations to direct capital within Latin America.

“We are excited, fortunate, and privileged to be stewards of our investors’ capital…. We are excited to have the capital to build the next generation of great fintech companies over the next cycle,” said Nigel Morris, managing partner and co-founder of QED Investors.

Announcements like QED Investors’ stand out today in the face of a complex landscape for the fintech ecosystem with respect to raising capital.

According to the analysis firm FT Partners, during the first quarter of the year, the global fintech ecosystem raised a total of $17.7 billion, a drop of just over 50% compared to the amount raised in the same period of 2022.

Although the first quarter of the year registered better results in terms of capital raised compared to the last two previous quarters, the global uncertainty caused by the turbulence in the U.S. banking industry has taken its toll on the fintech ecosystem.

Driving growth

For the executives of companies that QED Investors has bet on, the investment firm has been key to the growth of companies that have gained a foothold thanks to its value proposition in financial services combined with technology.

“QED has been an invaluable partner during critical phases of our business growth. As we have evolved to transform international payments for immigrants and their families, QED has been a constant force providing strategic guidance,” said Matt Oppenheimer, principal of Remitly, a firm focused on international remittances.

“QED has been instrumental in building our competitive advantage in secured lending. Bill Cilluffo and Nigel Morris (partner and co-founder of QED) have been instrumental over the years, true partners and always willing to support us on our journey,” noted Sergio Furio, CEO of Creditas.

With these two new funds, QED will have around $4 billion under management.

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