Canapi Ventures, a VC firm focussed on fintech startups, has secured the backing of a host of banks for a new $545 million fund.
Founded by former Comptroller of the Currency Gene Ludwig and Live Oak Bancshares CEO Chip Mahan, Canapi has put together an alliance of more than 35 banks and strategic investors for the fund.
The 'Canapi Alliance' includes 23 of the top 100 US banks by asset size, as well as the American Bankers Association and the Independent Community Bankers Association.
These players want to boost their ties with the fintech community, dangling a valuable potential distribution network in front of portfolio companies.
“Banks are looking for technology partners that can help them thrive and innovate in a rapidly changing and hyper-competitive market. We believe many of these solutions have to come from early stage companies and that is why we launched Canapi Ventures,” says Ludwig.
He adds: "We believe 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.”