VC firm Canapi Ventures raises $750 million for its second fund

A venture capital (VC) company known as Canapi Ventures recently raised $750 for its second fintech fund.

Canapi’s Fund II was even more successful than the first one

The firm was founded by Gene Ludwig, the former Comptroller of the Currency, as well as Chip Mahan, the CEO of Live Oak Bancshares. Its focus is on fintech startups, and its first fund was launched back in 2020 when it managed to attract a great deal of attention as well as capital.

At the time, it secured backing from over 30 strategic investors and banks, with its first fund raising $545 million. Now, however, the second fund ended up being even more successful.

The fund made around 20 investments across several areas, including financial infrastructure, fraud and identity, payments, lending, and credit, as well as real estate technology. It also claims that it managed to help facilitate almost 100 partnerships between portfolio companies and LPs, including major names like Built, Greenlight, Thoropass, and Alloy.

Known as the Canapi Alliance, the partner group now consists of 70 members. They include a wide spectrum of entities, from community to regional to super-regional banks, various service providers, and more.

The company intends to use the second fund to make similar investments as it did in the past, as far as it is known. However, in addition to that, it will also target companies that work on the governance of artificial intelligence, cybersecurity, as well as the intersection of climate technology and financial services.

Canapi Ventures’ success attracted new capital

Commenting on the company’s success, Ludwig noted that Canapi Venture’s venture capital model connects top-quality fintech firms to the extensive network of banks and strategic partners that the company had managed to put together. In doing so, it created a strong symbiotic value in this important and constantly evolving ecosystem.

Ludwig also noted that the firm’s connectivity in Washington, specifically to the regulators, had allowed it to help out companies that sought greater understanding and compliance with complex requirements while building alongside founders to maximize impact.

Mahan, on the other hand, said: “We’re proud to work shoulder to shoulder with our teams, helping them to best serve their customers and their customers’ customers.”

Some of the mentioned partners have praised the firm for its contributions to bettering the sector. One such statement came from Alloy’s co-founder and acting CEO, Tommy Nicholas. He said: “Canapi has been an invaluable partner for Alloy. Canapi pitched us on their ability to bring banking and regulatory expertise to the boardroom and to increase the quantity and quality of our banking pipeline. They have over-delivered on this promise, becoming one of our top lead generation sources and most trusted advisors. If you have a chance to get Canapi on your cap table, you have to take it!”