Fiat Ventures combines venture and advisory divisions into new brand, raises $35M Fund II
In an environment where emerging fund managers struggle to attract LP attention, FGV is betting that a different venture model can help it lure LPs.
Fiat Ventures has merged its growth consultancy and venture divisions into a new brand, FGV Capital, and launched its second fund, a $35 million investment vehicle. The fintech-focused company's general partners, Marcos Fernandez and Drew Glover, explained that combining the businesses aims to assist founders, whether part of their portfolio or not, with their go-to-market strategies.
The consultancy, previously known as Fiat Growth, offered startups support in scaling, business development, and go-to-market strategies, as well as access to its network of industry executives. By merging the two divisions, Fernandez and Glover believe they can provide more exposure and growth opportunities for startups. They emphasized that the combined entity will operate as separate units, and clear processes are in place to ensure business relationships do not influence investment decisions.
Fund II's focus is on fintech's intersection with AI, healthcare, commerce, and other industries. The firm took 18 months to raise the new fund, and LPs include the Reinsurance Group of America, MassMutual, and Bank of America. FGV aims to leverage its combined model to attract LPs and startups, as well as deliver better returns.
The fund will invest $1 million to $1.5 million into at least 25 companies over two years, with its portfolio already including pet insurance company Wagmo and loan agency Possible Finance.
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