Leading Nordic banks back Swedish venture capital in $40m fund to increase efficiency of fintech ecosystem

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Swedish venture capital firm Wellstreet has launched a new fintech fund with an expected total of around $40 million. The funds will go to early-stage B2B and infrastructure technology companies that are driving the efficiency of global banking and fintech ecosystems.

Backed by executives from Nordic banks and fintech companies, including Avanza, Collector, Handelsbanken, Swedbank, Northmill, Resurs and Klarna, the venture capital fund plans to facilitate the early growth of Nordic companies.

The Fintech Fund is the second from the company which was founded in 2016 by former Klarna executive Mikael Wintzell.

Its first fund, Wellstreet Ventures, closed with a total raise of approximately $20 million in 2020 and has been fully invested in companies including electric boat innovator X Shore, advertising technology provider DanAds and brand of ICANIWILL sportswear. The company’s successful releases to date include digital electricity provider Tibber (backed by Founders Fund), live video shopping platform Bambuser (backed by Capital Group, Tenth Avenue and Harmony Partners, among others) and Checkin.com (IPO in Sweden in 2021).

The first fund achieved a 70% rate of return in just three quarters. The VC also foresees an accelerated timeline for the Fintech Fund, having made its first two investments before the first close.

All startups that receive investments from the Fintech Fund will automatically be part of the Fintech Loft, which will provide them with mentoring and coaching as well as credits from AWS to accelerate product development.

Armando Coppola, Partner and Fund Manager at Wellstreet, said: “The main objective of the Fintech Fund is to help banks and other financial institutions adapt to new market norms and become more efficient.

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