Dutch private equity firm Velocity Capital has launched a 105 million euro ($120 million) venture fund aimed at investing in early stage companies focusing on banking, payments, credit and other fintech areas.
The Amsterdam-based private equity firm, which has invested in fintech companies since 2007 including online brokerage firm TradeKing Group Inc. and South African point-of-sale provider Yoco, said on Tuesday it’s launching its first fund in order to create more investment possibilities as the size of its early stage investments increases.
Unlike most venture funds, Velocity’s evergreen fund won’t have a fixed-end period and the firm will recycle any capital from exits back into the fund, the firm said. Velocity said the structure provides more flexibility to focus on optimizing a company’s value compared to a closed-end fund, which can force the fund’s agenda on entrepreneurs.
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