SBT launches fintech-focused VC fund

Ellie Pullen
13 November 2013

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SBT Venture Capital, a new fund focused exclusively on investments in the financial technology (fintech) space, has launched with $100m in capital.

The fund has a lifespan of 5-7 years. SBT partner Matteo Rizzi told unquote" that the firm will start the divestment period for the fund's portfolio in the fifth year.

The vehicle was set up by Russian bank Sberbank following the establishment of its new research and development centre, which will explore new technology for banks such as cloud computing, mobile payments and personalised online banking. One of the fund's partners, Mircea Mihaescu, is the director for IT strategy at Sberbank.

SBT is based in London.

Investors
Currently, the fund's sole investor is Sberbank, the largest bank in Russia and eastern Europe. However, Rizzi told unquote" the fund may seek external investors in the future.

Sberbank may invest a total of $700m (including the first fund's $100m) in subsequent venture capital funds over the next three years. Mihaescu said in a statement the fund will look for large international banks to become LPs of SBT's subsequent funds.

Investments
SBT will focus its investments solely on the fintech space, investing in start-ups that are already generating revenue. SBT will invest $2-10m per transaction, predominantly taking part in series-A rounds.

The fund is global but will focus mainly in the US and Europe, Rizzi told unquote". Mihaescu said earlier this year in an interview with a Russian financial magazine that the fund is currently examining possible investments in France, the Netherlands, the UK, Russia and Ukraine, as well as some in Asia, Israel and the US.

SBT announced today (13 November) it has taken part in a €3m series-A funding round for Walkbase, a Finnish developer of a marketing optimisation platform for brick and mortar retailers.

The fund's first investment was in a US-based company, Sequent Software, which provides software designed to enable customers to securely download payment cards to mobile devices. SBT led a $12m funding round for the company in July.

Regarding possible exit strategies for the fund's portfolio, Rizzi stated there is currently not a big market for large banks buying young fintech companies.

People
Matteo Rizzi and Mircea Mihaescu are the partners of SBT.