China-based CreditEase Fintech Investment Fund (CEFIF) invested in three US startups during the “2017 LendIt USA Conference” in New York, an annual global fintech industry event.
CEFIF on Thursday (March 16) participated in the Series C financing round in Trumid, an electronic trading platform for the bond market; Series B financing round in WeConvene, an online corporate access management ERP provider for capital markets; and Seed Round financing in WorldCover, an innovative peer-to-peer insurance network.
Founded in 2015, CEFIF has a $1 billion in total committed capital that focuses on global growth-stage fintech companies. Its parent firm CreditEase is a leading fintech company in China, specializing in small business and consumer lending as well as wealth management for high net worth and mass affluent investors.
CreditEase is also a standing committee member of China’s Internet Finance Industry Association, and chairman of Beijing Marketplace Lending Association. Its majority owned subsidiary Yirendai, an online consumer finance marketplace, is listed on the New York Stock Exchange.
CEFIF claims to have formed strategic partnerships with global venture capital investors that cover five sub-segments within the domain of fintech ― such as payments, personal finance, private wealth management, enterprise solutions, and insurance.
The latest investments in Trumid, WeConvene and WorldCover have brought CEFIF’s portfolio of fintech startups to eight. It previously invested in cloud-based buyer-supplier network Tradeshift, auto financial technology platform DYCD.com, and blockchain-based payment application Circle.
CreditEase founder and CEO Ning Tang said as China is increasingly embracing financial technologies, the fintech investment vehicle is well positioned to continue to address the underserved needs of fast-growing, mass affluent and high-net worth investors.
“We are also expanding our various investment funds to meet demands of our wealth management clients and enable them to take advantage of global investment opportunities while ensuring balanced asset allocation,” Ning added.
CEFIF reported over the past three years, the global fintech sector has experienced tremendous growth, becoming a key destination for venture capital and private equity investments.
The total investments in global fintech sector reached $18 billion in the first nine months of 2016.
“Driven by strong investment interests, fintech companies continue to gain significant momentum, capturing greater market share and causing disruption in the traditional financial service sector. There has also been increase in collaboration between banks and fintech companies in the last couple of years,” CEFIF said in its statement.
CEFIF Senior Partner Anju Patwardhan said they expect the Chinese fintech market will continue to grow in 2017 and beyond, as many three to five-year-old companies have grown into large-scale operations.
“We expect many of these to mature into high-quality, mid-to-late stage companies. Similarly, we anticipate a slew of promising early and mid-stage growth companies in the US market, due to the improving climate for investment, as well as the more sustainable development of fintech sector,” Anju said.