Element Ventures Secures $130M to Invest in Fintech Enterprises

The Growing Investment in B2B Fintech

The increasing prominence of Open Banking, the PSD2 Regulation, and the broader fintech expansion has led investors to recognize the potential of dedicated funds focused on this evolving landscape.

The surge in banking-as-a-service solutions, payment systems, insurtech, asset management, and infrastructure providers signals a significant shift within the financial sector.

European Fintech Funding

According to Dealroom data, European fintech companies secured $12.3 billion in funding during 2021.

However, substantial opportunities remain for further investment in B2B fintech startups, indicating a market that is far from saturated.

Element Ventures Launches $130 Million Fund

In response to this trend, Element Ventures, a B2B fintech-focused firm, has announced a new $130 million fund.

This fund aims to capitalize on the growing enterprise fintech movement.

The Team Behind Element Ventures

Element Ventures was established by Stephen Gibson and Michael McFadgen, both seasoned professionals in financial services.

Spencer Lake, formerly vice chairman of Global Banking and Markets at HSBC, has also joined the firm.

The firm benefits from backing by finance-focused Limited Partners (LPs) and a network of over 30 founders and executives within the industry.

Investment Strategy and Portfolio

Element Ventures employs a “high conviction investment strategy,” prioritizing quality over quantity.

The fund intends to invest in approximately 15 companies, offering each portfolio company a substantial level of support.

Current investments include:

Hepster (Germany) – An embedded insurance platform, having raised $10 million.
Billhop (Sweden) – A B2B payment network, with $6.7 million in funding.
Coincover (U.K.) – A cryptocurrency recovery service, having secured $11.6 million.
Minna (Sweden) – A subscription management platform, raising $25 million.

Insights from Element Ventures Partners

McFadgen, a partner at Element Ventures, explained that their investment approach is a continuation of a long-standing strategy.

He stated that the firm was initially founded in 2018, with Lake joining in 2019.

Gibson emphasized their confidence in the European fintech and insurtech sectors.

He noted that the insurance industry, historically slow to innovate, is undergoing a transformation.

Element Ventures aims to foster a network around companies experiencing breakthrough moments, providing not only capital but also comprehensive support throughout their development.