New York-based Nyca Partners, which was set up by former Visa Inc President Hans Morris, today announced the successful closing of its latest venture capital fund with more than $125 million, as the Silicon Valley VC firm looks to continue investing in early-stage U.S. fintech startups.
The new fund, dubbed Nyca Investment Fund, has 10 institutional investors and 29 limited partner advisers including Brian Finn, former president of Credit Suisse First Boston, Tom Miglis, former COO of hedge-fund firm Citadel LLC, and Neal Wolin, former deputy undersecretary of the U.S. Treasury. Corporate investors in the fund include the Royal Bank of Canada, Northwestern Mutual Life Insurance Co. and Intuit Inc, the company said.
Nyca closed its $30 million first fund back in in July 2014. Since then, the fund has provided a stable pool of capital for long-term investment opportunities. Its previous investments include Axioma, EmBroker, Ladder, LeapYear, and Personetics, as well as LendingClub Corp which went public in late 2014.
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Nyca believes it can offer better returns to limited partners that invest in venture capital with a fund under $200 million. One big exit, such as Lending Club, can provide the full return investors may be looking for.
David Sica, a principal at Nyca Partners, commented: “The market is sobering up and looking for high-quality metrics. The first wave of fintech was very much about building standalone large brands. We are now in an environment where the existing financial institutions and incumbent players are looking for ways to partner with startups.”
“When we started Nyca nearly three years ago, the goal was to create a unique firm that was comprised of experienced financial services and technology professionals that could help companies succeed in the global financial system,” said Hans Morris, CEO of Nyca Partners.
“By providing financial technology knowledge to early stage companies, we are able to offer a unique and much-needed service. This is an exciting time for fintech and this latest fund will allow us to continue to invest in companies that leverage technology to build platforms that empower consumers,” he concluded.