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QED Investors closes USD1.05bn Fund VII

QED Investors, a global fintech venture capital firm, has closed a significantly oversubscribed seventh fund (Fund VII), with capital commitments of USD1.05 billion. 

QED Investors, a global fintech venture capital firm, has closed a significantly oversubscribed seventh fund (Fund VII), with capital commitments of USD1.05 billion. 

Fund VII is comprised of a USD550 million early stage fund and a USD500 million growth-stage fund. These funds will allow QED Investors to continue to invest in fintech companies primarily in the US, the UK, EU, Latin America and Southeast Asia.

Founded in 2007 by Nigel Morris and Frank Rotman, QED has invested in more than 150 companies – including 20 unicorns – and has more than USD3 billion under management. It is known for its singular focus on fintech and its more than 250 combined years of operator experience. QED works side-by-side with CEOs and founders, applying a rigorous, hypothesis-driven approach that identifies investment opportunities that are well-positioned in the marketplace.

“Fund VII is the largest proof point we have that proves that our model is working,” says QED Investors Managing Partner and Co-Founder Nigel Morris. “Over the past 14 years, our team has utilised its extensive experience as operators-turned-investors to help companies achieve breakthrough growth. We are certainly proud of our portfolio of companies and look forward to leaning into the significant opportunity the market has to offer. We have been doubling down on fintech since 2007 and are thrilled to continue play a key role in fintech’s future growth.”

“Throughout the past year and a half, we have seen a significant step function to digital financial services as consumers, SMBs and institutions recognise that fintech is not just a fad. We’re seeing positively selected inbound deal flow on a massive scale now from pre-seed to growth-stage companies. With our growing brand backed by an ever-expanding team that’s willing to play the full 90 minutes, we’re perfectly positioned to seize this momentum and add incredible value.”

QED has exclusively invested in fintech since its inception in 2007 and has played a crucial part in the growth of some of today’s fintech behemoths including Credit Karma (QED led its Series A round in 2009), Remitly (QED led its Series A in 2014), Nubank (QED participated in its Series A in 2014) and AvidXchange (QED participated in its Series B in 2014). QED has been a leader in the fintech investing community throughout fintech’s evolution, having guided and grown these companies and others through the ecosystem’s boom ­– globally, fintech investment was USD928 million in 2008 and USD105 billion in 2020.

“As we searched for an investor to lead Bitso’s Series B, we looked for someone with operational expertise that could help us navigate the complexity of building a business at scale,” says Bitso CEO and Co-Founder Daniel Vogel. “The QED team has been the perfect partner for us: long-term strategic thinking combined with preciseness to accelerate execution. QED not only excels in understanding the landscape of our industry, but they’re able to help us navigate the most complex challenge: building high-functioning and performing teams. QED’s incredible team, unparalleled fintech expertise and deep operational competence makes them one-of-a-kind investor for anyone looking to change the future of money or finance.”

Added Nubank CEO and Co-Founder David Velez, says: “Nigel, Bill and the entire QED team have been true partners to Nubank since the very early days. We have benefitted immensely from their previous experience across multiple areas of our organisation, and have been able to rely on them for sound strategic and tactical advice at every step of our growth stage.”

Said AvidXchange CEO and Co-Founder Michael Praeger, says: “QED has been a true partner for me and taken a ‘roll-up-your-sleeves’ approach to help me develop strategies and execution plans to grow our business.  Their entrepreneurial DNA and deep fintech domain knowledge related to B2B payments and the development of our AvidPay Network along with our Invoice Accelerator offering for supplier financing has be game-changing for us in accelerating our revenue growth and becoming the middle market leader for accounts payable automation.    

“One of the refreshing focus areas that Nigel has instilled at our board of directors level is a focus and lens on human capital and developing the talent of our team which is very different focus compared to many venture investors who are solely focused on the financial operating metrics of the business.” 

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