QED Investors closes $1.05b fund for fintech investments in US, SE Asia and other markets

Photo: REUTERS/Beawiharta

QED Investors, a US-based venture capital firm focused on fintech investments, has secured $1.05 billion in commitments for its seventh fund.

Fund VII — which comprises a $550 million early-stage fund and a $500 million growth-stage fund — will allow QED Investors to continue to invest in fintech companies primarily in the US, the UK, Latin America, and Southeast Asia.

The latest fund close brought QED’s assets under management to more than $3 billion. Founded in 2007 by Nigel Morris and Frank Rotman, the VC firm has invested in over 150 companies, including 20 unicorns. Morris said the firm has been doubling down on fintech since 2007.

“Fund VII is the largest proof point we have that our model is working,” Morris said.

The firm’s notable investments include Nubank, SoFi, Credit Karma, Klarna, GreenSky, Avant, Flywire, Remitly, QuintoAndar, Creditas, ClearScore, and Konfio.

The close of Fund VII comes 19 months after the firm secured $350 million for fund VI. It raised its first fund in 2008 at $30 million. The latest fund will invest in early- and growth-stage fintech businesses.

The final close of Fund VII comes as VC investments in fintech are expected to remain strong in 2021 after reaching $105 billion last year, according to KPMG’s Pulse of Fintech report.

The same report, however, noted that overall fintech investment in the Asia-Pacific region dropped from $16.8 billion in 2019 to $11.6 billion in 2020 — a six-year low as uncertainties created by the pandemic drove a large amount of investment away from emerging markets like Southeast Asia.

“Throughout the past year-and-a-half, we have seen a significant step function to digital financial services as consumers, SMBs and institutions recognise that fintech is not just a fad,” Morris said.

Prior to QED, Morris co-founded Capital One Financial Services in 1994.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.