Sydney-based venture capital firm Reinventure has sealed a $50 million fund with the backing of Westpac in its quest to cherry-pick the most promising Australian fintech startups and foster partnerships to make the banking process smoother for customers.
It is the group’s second $50 million fund and sees Westpac double down on its support for the local fintech sector.
Reinventure makes investments from seed through to Series A and up, with a particular focus on disruptive technologies that have a direct bearing on Westpac’s core business or can be nurtured through a closer relationship with the Australian bank.
Reinventure’s first $50 million fund was launched in 2014 and has since invested in ten Australian startups including Coinbase, PromisePay, Hey You, Auror and Data Republic.
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Westpac chief strategy officer Gary Thursby said,”The Australian fintech industry is developing rapidly and we continue to be impressed by the quality of the talent, ideas and technology that exists in the start-ups. Our vision is to be one of the world’s great services companies and we believe the adoption of new customer-focused technologies is an important step in achieving this goal.”
A Rapidly Growing Sector
Reinventure’s first $50 million fund was launched in early 2014. Co-founder and managing director Danny Gilligan commented that the fintech sector today is almost unrecognisable from that time.
He said, “There’s been a huge change in both the quality and quantity of ventures in Australia over that timeframe. When we proposed our fund to Westpac in mid-2013 fintech wasn’t a word. Venture capital is a long game so it’s hard to measure when you’re a quarter of the way through the race but there are great signs and we’re confident with how it’s going”.
Australia has exhibited a highly bullish trend where venture capital is concerned in 2016 with many large funds having been announced and closed throughout the year.
This new AU$50 million startup highlights the rate at which financial innovation is expanding in Australia, and is likely to do so in the foreseeable future.