Key facts
- Fiat Ventures has launched FGV Capital, integrating its venture and consultancy arms.
- FGV Capital's second fund has secured $35 million.
- The fund's investment thesis targets fintech's convergence with AI, healthcare, and commerce.
- FGV Capital aims to support portfolio companies with scaling and go-to-market strategies.
- The fund will invest between $1 million and $1.5 million in at least 25 companies over two years.
Fiat Ventures announced on Tuesday the consolidation of its growth consultancy and venture capital divisions under a new brand, FGV Capital. Concurrently, the firm launched its second fund, a $35 million vehicle aimed at fintech intersections with emerging sectors.
The firm's general partners, Marcos Fernandez and Drew Glover, stated that the integration of businesses is intended to better support founders with go-to-market strategies and access to industry networks. The consultancy arm, previously operating as Fiat Growth, will now work in tandem with the investment vehicle.
Glover explained that this combined model has already proven beneficial in securing investment spots, as founders recognize the added value of accessing the advisory network. He emphasized that the consultancy and investment arms will operate independently, with established processes to prevent bias in investment decisions. The goal is to leverage the FGV infrastructure for enhanced information and context for the investment team, rather than to influence outcomes.
Fund II's investment thesis centers on the convergence of fintech with areas such as artificial intelligence, healthcare, and commerce. The fundraising process for this new fund took approximately 18 months, with FGV Capital seeking limited partners (LPs) who could offer more than just capital, including business guidance for portfolio companies. Notable LPs in Fund II include Reinsurance Group of America, MassMutual, and Bank of America.
In a competitive venture capital landscape, FGV Capital is positioning its integrated model as a differentiator to attract both LPs and startups, aiming for superior returns. The firm also offers a program to assist LPs' portfolio companies with scaling and facilitates partnership opportunities between LPs and FGV's advisory clients.
Fernandez highlighted the power of this "full-stack model," where invested companies can become clients, and companies worked with can become investments. He envisions an ecosystem where capital, distribution, and relationships compound, creating more avenues for founders and investors to succeed together. Fund II is expected to invest between $1 million and $1.5 million in at least 25 companies over two years, building on the firm's previous backing of around 40 companies, including Wagmo and Possible Finance.