Dutch Bank ABN AMRO has increased its venture capital fund from €100m to €150m, making it the third addition to the fund’s capital since it was set up in 2015.
The latest addition to the fund’s capital is part of the bank’s determination to further accelerate its digital transformation.
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Furthermore, ABN AMRO hopes the extra funding will fuel growth opportunities that the bank sees in the international tech and fintech ecosystem.
Since its launch, the fund ABN AMRO Ventures has invested in 15 innovative companies, with one successful exit already completed. In addition, six new companies were added to the portfolio during 2020, with four follow-up investments to support further growth.
Frank Verkerk, ABN AMRO’s Chief Digital Officer, who also chairs the ABN AMRO Ventures investment committee, said: “It’s wonderful to see that the fund can make a real contribution to the bank’s digital strategy, and to the development of the innovative companies in which we invest, many of which are just starting.”
“Unique access to technology and talent”
He continued: “We do this by matching the innovative capabilities of those techs and fintechs directly to ABN AMRO’s concrete client or banking processes. The investments in and partnerships with the companies in our portfolio also give us unique access to technology and talent. With this latest addition to the fund’s capital, we will be able to further pick up the bank’s pace of innovation.”
According to Hugo Bongers, director of the venture fund, there will be a similar number of investments next year. He also said that due to uncertainty surrounding Covid-19, the bank wants to ensure it can support its existing portfolio companies.
“Corporate venture capital as a category needs to prove that it is here for the long term,” he said. “Digitalisation at the bank has definitely been accelerating due to the pandemic. People are not going into bank branches so all the technologies around know your customer and mobile access are in demand.”
The portfolio includes Swedish challenger bank Tink, who last week closed an €85m ($103m) investment round, bringing its valuation to over $800m.
