New VC fund launches targeting European fintech investments

By Daniel Lanyon on Tuesday 18 February 2020

Alternative LendingDigital BankingSavings and Investment

The venture capital portfolio, from DaVinci Capital, has been seeded with a €30m Investment by the German Development Finance Institution (DEG).

New VC fund launches targeting European fintech investments
Image source: Photo by Startup Stock Photos from Pexels

A new venture capital fund that is seeking to invest heavily in fintech has launched with a €30m initial investment by the German Development Finance Institution( DEG).

The portfolio, Da Vinci Capital Technology Fund III will invest across Europe, including in the UK, but with a focus on Eastern European and non-Russian republics of the former Soviet Union. AltFi understands the new fund is interested particularly in UK firms with development operations in Ukraine, Kazakhstan and Belarus.

Established in 2008, Da Vinci says it typically seeks to add value to its portfolio companies by partnering with company founders to improve corporate governance, financial performance, merger and acquisitions, capital structure and environmental and social policies.

Da Vinci is also backed by the European Bank for Reconstruction and Development and has over $400m of assets under management. DEG is part of KfW, the German promotional bank.

Tilman Kruse, Director Corporates & Funds for Europe, Middle East & Central Asia, said, countries such as Ukraine, Belarus, and Kazakhstan have “deep, competitive and sophisticated” IT engineering pools and superior R&D excellence. 

“The fund will tap emerging geographies which stand out as a hotbed for domestic and cross-border technology growth companies, requiring investment capital and technical expertise to expand their businesses and create quality jobs at home. This flagship fund of Da Vinci Capital is designed to identify the next generation of digital economy companies in the region, and to take them to the next level.” 

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