Venture capital funds Financial venture capital studio (FVS) has closed its second fund, a $40 million pool designed to help early-stage startups.
“Since our launch in early 2018, we have strived to position ourselves as a founder’s first step in their entrepreneurial journey”, co-founder and managing partner ryan falvey wrote on a Tuesday (August 9) blog post. “The barriers to entry into FinTech are high and launching a new business is incredibly complex.”
Falvey said in the post that his company’s goal is to accelerate the process by bringing together partners from across the financial services industry to engage with the founders of FVS, while providing operational support and seed capital. .
“We’ve seen this approach consistently empower our founders to act faster, make more informed decisions, and over time build category-defining businesses,” he said in the post.
Since launch, FVS has invested in 50 companies, seeing 94% of its companies raise follow-on capital or be acquired.
The FVS milestone comes amid one of the toughest times for startups seeking seed or Series A funding in years.
Read more: Metrics drive early-stage funding amid VC funding drought
“The most difficult fund management I have ever seen in my career” is how Jeff Morris Jr.which runs a crypto-focused seed fund called Chapter One, described the landscape last month. “It will be painful in the short term.”
And as PYMNTS also noted last month, lenders and investors haven’t necessarily disappeared, although the economic situation has changed. As the world emerged from the pandemic last year, there was a surge in investor activity, causing overinflated valuations and a rush into the hottest tech spaces.
See more: To survive the funding drought, startups need to think like camels, not unicorns
A year later, some of these sectors experienced strong devaluations. For venture capitalists hoping for a quick initial public offering (IPO) and easy profit, the reality is sobering.