San Francisco-based Flourish Ventures, an evergreen venture firm with a unique focus on fintech startups in the U.S. and emerging markets, has successfully raised $350 million in new funding, expanding its total assets under management to an impressive $850 million. This significant development comes as fintech investment is on the rise, particularly in emerging markets like Africa. Here’s what founders need to know about Flourish Ventures’ latest move and its strategic approach:
A Different Approach to Investment
Unlike traditional venture firms, Flourish operates as an evergreen firm, allowing it to maintain a flexible investment strategy without being bound by fixed timelines for deploying or exiting capital. This approach aligns with the vision of its sole LP, eBay founder Pierre Omidyar, to drive systemic change and promote a fairer financial system. According to Tilman Ehrbeck, global managing partner and co-founder, this approach gives Flourish a comparative advantage.
A Fintech Venture Fund with Purpose
Flourish’s investment philosophy goes beyond financial returns. It seeks to support companies that demonstrate innovative and more equitable approaches to business. These innovative approaches are intended to influence and enhance the entire financial sector. Flourish’s primary focus is on fintech with a clear purpose.
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Global Reach and Impact
Since its inception, Flourish has invested in 71 startups across five continents. While nearly half of its capital has been deployed in the U.S., it has made noteworthy investments worldwide, including digital bank Chime, Brazilian neobank Neon, embedded finance startup Unit, and African payments infrastructure company Flutterwave. These investments are a testament to Flourish’s ability to identify and nurture promising companies at their seed or Series A stages.
A Diverse and Inclusive Team
Flourish prides itself on maintaining a diverse team, with a majority of its members being female and non-white. This diversity extends to the investments it makes, striving to support companies with co-founders from various backgrounds and regions.
Strategic Focus
Flourish Ventures collaborates with policymakers, regulators, industry leaders, and ecosystem players to drive its mission of creating systemic change. The firm’s managing partners and founders each have their respective regions of focus, ensuring a broad and targeted approach to investment.
Investing in the Future
A portion of Flourish’s new capital will be reserved for follow-on investments. The firm’s typical initial investments range from $2 million to $7 million, and it targets six to ten new investments annually. This flexibility allows Flourish to lead or co-lead investments and actively engage in board roles when appropriate.
What’s Next?
Looking ahead, Flourish continues to lead the charge in infrastructure investments. It is actively seeking “next-gen” companies in the B2B payments and vertical SaaS sectors that integrate finance more deeply into their offerings. The firm also maintains a keen interest in transforming outdated legacy infrastructure, particularly in the banking, insurance, payments, lending, and identity sectors.
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In a landscape where fintech investment is evolving, Flourish Ventures’ substantial funding round offers a beacon of hope for fintech startups, particularly those operating in emerging markets. As the firm expands its reach and impact, it remains a prominent player in fostering innovation, equity, and lasting change within the financial sector.
This latest investment from Flourish Ventures underscores the continued growth and importance of fintech companies, especially in emerging markets, making it a valuable development for founders seeking to make a difference in the financial technology sector.
Flourish Ventures Africa Flourish Ventures Africa
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard