The Finstar Financial Group (Finstar), an international private equity group, is planning to invest $150 million in fintech startups during the next five years.
The fintech industry has been blowing up with crowdfunding for startup companies. According to Finstar’s official announcement, the global investment in fintech startup companies has grown to $12.7 billion, noted in the CB Insights Global Fintech Report 2016. Other than support startups, the funds will further be used for the research and development conducted within Finstar’s portfolio firms.
Finstar’s Five Year Plans
Oleg Boyko, the Chairman of Finstar, spoke in detail regarding Finstar’s funding plans for the next five years: “We will finance direct investment in startups, contributions to SMEs, and research and development of cutting-edge fintech within our own companies. As far as the startup component is concerned, we are targeting three to six deals per year, in the seed to Series A rounds, typically ranging from USD500,000 to USD30 million. Our R&D investment is about pushing financial technology further and leveraging that innovation across our already strong fintech portfolio. This means that – beyond our financial commitment to the sector – the businesses we work with benefit from the strength of our technical resources and the depth of our expertise.”
Finstar, which was established in 1996, has experience in startup launching, expansion projects, and restructuring companies. The group offers services in IT, consumer retail, real estate sectors, and finance related services.
In 2015, the firm launched Digital Finance International, a portfolio management company in order to deliver tailor-made lending services to clients worldwide. During the last two years, Finstar has taken part in a number of collaborations with European fintech firms such as Euroloan, Spotcap, Rocket10, and Viventor.