authors Geert De Lombaerde
Investment firm FINTOP Capital has closed its second fund after gathering commitments for $126 million it plans to put to work on promising financial technology ventures.
FINTOP’s new fund is more than double the size of its first outing, which closed in 2017, and $26 million larger than its initial goal. Managing Partner Joe Maxwell and his team retained nearly 80 percent of their first-fund limited partners while also adding a number of family offices and other investors for their second run. Fund II was capped earlier this spring — after a first close a little more than a year ago — and already has put money to work in a handful of companies focused on automating back-office functions. The goal, Maxwell told the Post, is to grow its average investment size to $7 million from about $4 million in Fund I.
“Fintech is doing really well, especially for us because we’re not focused on the consumer side of things,” Maxwell said. “A lot of enterprise businesses had been looking at the next two to three years to digitize. That time frame has definitely accelerated.”
Among the firms FINTOP has backed from Fund II are myDigitalOffice, which synthesizes hotel reports and booking data into a forward-looking report, and Chargeback, a company that markets credit card dispute resolution services. Both fit the efficiency-focused, value-added mold Maxwell last year called “boring stuff that you can’t unplug once it’s in.”
“Necessity is the mother of invention,” Maxwell said of the current economic climate pushing larger businesses to seek out services such as those be myDigitalOffice and Chargeback.com. “A lot of great companies are built at the bottom.”