Former Fiat Ventures announced the consolidation of growth advisory and venture capital operations under the new brand FGV Capital, while completing a two-phase fund-raising exercise of $35 million. It stated that the new architecture would continue to operate separately from investment, but hoped to help start-ups expand their markets through a more complete network of services.

Second phase of the Fund ' s investment in the cross-cutting area of finance, science and technology

The two general partners of FGV Capital, Marcos Fernandez and Drew Glover, stated that the second phase of the Fund would focus on cross-cutting opportunities in the areas of finance technology and technology with AI, medicine and business. The fund has been raised for about 18 months, with funding from Reinsurance Group of America, Mass Mutual and Bank of America.

It is planned that the fund will invest in at least 25 companies over the next two years, with a single cheque of between $1 million and $1.5 million. The Fund has now invested 13 companies.

  • Phase two: $35 million
  • Single investment: US$ 1 million to US$ 1.5 million
  • Number of planned investments: at least 25 companies

Harmonization of consultancy and investment operations to the new brand

Before renaming, Fiat Growth provided growth, expansion and market entry strategy support mainly for start-up firms and helped customers to interface with industry management resources. Management believes that there is a clear synergy between this part of the network and investment operations.

FGV indicated that start-up firms may also be supported by a network of consultants after accepting their investments, which helps agencies compete to gain access to more company lists of shareholders. At the same time, the company stressed that consultancy operations and funds remained independent entities and internal processes had been put in place to avoid business collaboration affecting investment judgement.

Trying to attract LPs in a whole house mode

In an environment of general pressure on new and emerging fund managers to raise funds, the FGV is trying to use the “investment + consultancy” model to attract both donors and start-ups. It stated that, in addition to providing support to the enterprise to be invested, it would also assist in the expansion of portfolio companies under the umbrella of the LP and seek opportunities for cooperation between the LP and enterprises covered by the consultancy.

In management ' s view, such a model would allow for stronger linkages between funding, distribution capacity and business relationships. An investment company may become a consulting client, a company covered by the consultancy may also enter the investment list, and a LP may become a customer or partner of the enterprise being invested.

Additional information:FGV had previously raised a $25 million first-time fund. To date, the Agency has invested in approximately 40 companies, including the pet insurance company Wagmo and the loan platform Possible Finance.