QED Investors said the fund was significantly oversubscribed.

Leading global fintech VC firm QED Investors announced today the close of its Fund VII with commitments from investors of $1.05 billion. The firm intends to deploy the funds in support of fintech startups across the U.S., the U.K., Latin America and Southeast Asia. Fund VII is made up of a $550 million early stage fund and a $500 million growth-stage fund. (Yahoo Finance)

QED and Fintech

QED has been at the forefront of fintech venture finance, exclusively investing in the sector since its inception in 2007 by Nigel Morris and Frank Rotman. According to the firm, globally, fintech investment was $928 million in 2008 and $105 billion in 2020.

Key portfolio investments include Credit Karma, Remitly, Nubank, and AvidXchange.

Altogether, QED has invested in more than 150 companies, 20 of which are unicorns. Currently, the firm has over $3 billion of AUM.

Fintech no passing fancy

“Throughout the past year and a half, we have seen a significant step function to digital financial services as consumers, SMBs and institutions recognize that fintech is not just a fad,” said Managing Partner and Co-Founder Nigel Morris. “We’re seeing positively selected inbound deal flow on a massive scale now from pre-seed to growth-stage companies.”

“Fund VII is the largest proof point we have that proves that our model is working,” he added.

QED has a collaborative style, working together with founders and CEOs, applying a rigorous, hypothesis-driven approach.

New funds for investment

Out of Fund VII’s early-stage fund, QED plans to invest check sizes in the range of $5 to $15 million across 40 to 50 companies.

The growth fund will deploy check sizes between $10 million and $40 million in 20-25 startups, according to TechCrunch.

The firm previously raised $350 million in February 2020 for its Fund VI.

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