Nasdaq has unveiled a freshly launched unit, which will focus on venture investments in the fintech space. In particular, the new dedicated group will seek to identify and collaborate on a wide range of new technologies with companies on a global basis, per a Nasdaq statement.
The launch is the culmination of an ambition over two years in the making, having begun back in 2015. Since then, Nasdaq has taken stakes in blockchain infrastructure provider Chain.com, machine intelligence company Digital Reasoning and real-time risk analytics firm Hanweck.
Following its launch, Nasdaq Ventures will be led by Morgan Stanley’s Gary Offner who boasts an extensive track record in private equity, venture capital, and strategic direct realm. Moreover, the minority stake investments made by Nasdaq Ventures are expected to range from less than $1M to approximately $10M and will include seed to late-stage venture rounds.
The unit’s initial focus will extend to such areas as digital transfer/blockchain, machine learning and artificial intelligence, emerging and frontier marketplaces, and next generation data, analytics and content aggregation.
The focus on a dedicated fintech investment unit also represents the group’s latest stroke at maintaining an edge over its competition. To date, many other exchange venues have opted to launch Memorandums of Understanding and other partnerships with local fintech entities, helping bring a cascade of new technologies to traditional exchange infrastructures.
The group’s President and CEO Adena Friedman noted that the newly formalized division will seek to weed out other companies with disruptive technologies that can be harnessed for the long-term benefit of its client base.
“Investing in pioneering fintech firms, who are developing unique technologies, continues our history of being a platform and partner of choice for the most innovative companies in the world. In addition, through this programme we plan to accelerate the pace of innovation to ensure our clients continue to benefit from the technologies that are reshaping the capital markets,” noted Ms. Freidman.