MiddleGame Ventures (MGV), a Luxembourg-based venture capital firm specialising in financial technology (FinTech), has secured €52 million in the initial closing of its third early-stage investment fund. The fund, targeting a final close of €150 million by early 2025, aims to support the next generation of European FinTech pioneers across various financial sectors.
A week back, we had also reported about how Morgan Stanley and West Coast Fund is ready to inject $100M into Mexican fintech giant Clip.
Focus on early-stage innovation in financial services
MGV’s new fund will focus on post-seed, Series A, and Series B investment stages. It will target companies operating in both established and emerging financial service verticals, including deep-tech and cybersecurity sectors that complement FinTech solutions. This approach reflects MGV’s belief in the transformative potential of FinTech innovation across the entire financial landscape.
The fund has already garnered commitments from prominent investors, including the European Investment Fund (EIF), the Ireland Strategic Investment Fund (ISIF), returning investors like S&P Global and the Luxembourg Future Fund (LFF), alongside new and existing family offices across Europe and the United States.
Backing innovation for a digital financial future
Pascal Bouvier, Co-Managing Partner at MGV, expressed gratitude for the investor support, highlighting the value of specialist FinTech funds in fostering innovation:
“We are grateful for the support of our investors… We believe that financial services are on the cusp of a wave of unprecedented innovation… This transition will enable seamless business models to emerge, removing friction and paving the way for entrepreneurs to build substantial long-term businesses.”
Investors echoed this sentiment, with Marjut Falkstedt, Chief Executive of the EIF, emphasising the importance of supporting FinTech’s role in improving financial services:
“Fintech companies are at the forefront of financial innovation by developing new digital solutions… That is why we are glad to renew our collaboration with MiddleGame Ventures to support European entrepreneurs and contribute to the digital transition of the financial sector.”
Similarly, Brian O’Connor from ISIF highlighted the fund’s potential to support Irish businesses and contribute to the overall growth of the European FinTech sector. Sally Moore from S&P Global also emphasised the value of collaborating with FinTech players like those supported by MGV.
Building on a strong track record
MGV has a history of supporting successful early-stage FinTech ventures. Some notable examples from their previous funds include Wayflyer, Keyrock, Ripple, and DriveWealth. The firm leverages its expertise to guide entrepreneurs through the complexities of the growth stage, which they refer to as the “MiddleGame.”
With the initial closing secured and several new investments on the horizon, MGV’s third fund is poised to play a significant role in shaping the future of European FinTech. The fund’s focus on early-stage innovation and its backing from prominent investors suggest it will be a key player in supporting the next generation of FinTech companies that are transforming the financial services landscape.
While the FinTech sector has seen some decline in investor appetite recently, MGV’s successful initial closing suggests a continued interest in early-stage companies with the potential to disrupt and reshape the financial services industry. It will be interesting to see which innovative FinTech startups MGV chooses to back in the coming months and how these investments contribute to the evolution of the European financial landscape.
