The nonprofit Accion has raised US$23mn for a brand new inclusive fintech startup fund
The company, which is a subsidiary of Accion will be investing in fintech startups that leverage technology to boost the reach, quality, and affordability of financial services for the under-served.
The additional US$23mn brings Accion Venture Lab‘s total capital under management to US$42mn.
Michael Schlein, president and CEO of Accion, said, “Despite progress, three billion people still have no safe or simple way to save money, get a loan to build a business, pay a bill, or protect their health and property with insurance.”
“Fintech startups are finding new ways to provide products and services that help these underserved people. Often startups lack the capital and strategic support they need to grow and scale their impact. Accion Venture Lab addresses this need,” he added.
Inclusive fintech startups face the same significant entrepreneurial challenges as other startups, as well as additional challenges: a highly competitive sector, constantly evolving regulations that vary across markets, challenges building the right team, and tight margins.
To address these needs, Venture Lab, typically the first institutional investor in its portfolio companies, provides both capital and extensive strategic and operational support across a broad range of functional areas.
Tahira Dosani, Venture Lab managing director, added, “Capital must be paired with strategic and operational support that is informed by a deep knowledge of the sector, target customer, and a deliberate focus on how new technologies can help the underserved build better lives. We can accelerate the growth trajectories of companies through our capital plus approach to investing.”
Vikas Raj, Venture Lab managing director, concluded, “This new pool of capital enables us to scale our efforts and remain at the forefront of seed-stage investing in inclusive fintech.”
