Canadian VC Portage Ventures aims to raise $1bn fintech fund

By Oliver Smith on Monday 1 August 2022

Alternative LendingDigital BankingSavings and Investment

The debt and equity fund will target late-stage fintechs seeking to raise over $50m.

Canadian VC Portage Ventures aims to raise $1bn fintech fund
Image source: Adam Felesky/Portage Ventures.

Fundraising has started for one of the largest dedicated fintech funds ever raised, with Canada’s Portage Ventures aiming to raise between $750m and $1bn.

Portage already has a vast portfolio of fintech investments, including Wealthsimple, Tuum and Borrowell.

The new fund, called Portage Capital Solutions (PCS) will target late-stage fintechs globally, with the investor looking to offer both debt and equity while taking advantage of the current downturn that is driving demand for funding.

Several reports have indicated that PCS is only interested in fintechs with a valuation of more than $500m, and with revenues of between $100m and $200m that are approaching profitability.

“In this market environment, we’re seeing accelerated demand for flexible capital solutions as entrepreneurs and shareholders look to continue the strong growth trajectory of their business,” said the fund’s co-head and Portage partner Daniel Ballen.

Ballen will lead the fund alongside fellow co-head Devon Kirk, both of whom have spent nearly two decades in private equity and structured finance.

The fund comes only weeks after Portage closed its third fintech fund, raising $655m for investments in early-stage fintechs.

“Daniel and Devon bring extensive sourcing and transaction execution experience across asset classes,” said Adam Felesky, co-founder and CEO of Portage. 

“Together, we can expand our efforts to partner with later stage visionary fintech entrepreneurs providing both capital and a value creation network that supports them throughout the life of their business.”

Fintechs are facing a global slowdown in investment activity, with players like Klarna, SumUp and the entire crypto sector facing a particularly bruising H1 with down rounds and layoffs.

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