BlackFin raises 350 million euros to invest in financial startups

BlackFin has completed the second closing of its second Tech fund at 350 million euros. This is twice the amount invested in the Tech 1 fund created 4 years ago. The venture capital firm has thus renewed its commitment to investing in financial start-ups.

A fund backed by institutional investors

These are not good times for fund-raising. However, BlackFin has struck a blow by announcing a second closing of 350 million euros for its Tech 2 fund, dedicated to the European financial services sector. Its predecessor, the Tech 1 fund, dedicated to financing European Fintech, Insurtech and Regtech, was endowed with 178 million euros. It had already contributed 15 million euros to the financing rounds of Friss, a Dutch insurtech offering fraud detection software for insurers, Pretto, a 100% digital mortgage broker, and Memo Bank.

BlackFin has decided to pursue the same strategy for the Tech 2 fund, focusing on the lower mid-cap segment of the financial services sector and enabling companies to reach important development milestones. The first closing of its Tech 2 fund was announced at the end of 2021, with €220 million raised from institutional investors including banks, insurers and Bpifrance. According to BlackFin, the fund's size could grow further by the end of the year, when the final closing takes place.

Focus on Fintech and Assurtech

Founded in 2009 by Laurent Bouyoux, Paul Mizrahi, Eric May and Bruno Rostain, who have worked together as managers and entrepreneurs in the financial industry for several decades, BlackFin intends to continue investing in fintechs and insurtechs specializing in business services. However, the current market environment calls for caution.

" The market has become more complicated, with financing constraints for young companies. But we're managing to mobilize investors in this environment, because corporate activity remains very dynamic ", reports Paul Mizrahi, founding partner of BlackFin, to Les Echos newspaper.

Investment in French Tech remains disrupted, even if it is gradually returning to normal levels. This is partly due to the rise in interest rates and the decline in listed Tech stocks.

Over the past 9 months, the company has made no new investments. BlackFin has only invested in Descartes, an Insurtech which acts as an underwriting agent, taking on risk on behalf of leading insurers and asset management funds.