FGV Capital closes oversubscribed $35M Fund II to chase fintech’s AI wave — TFN

• Fiat Ventures has rebranded as FGV Capital and closed its oversubscribed $35 million Fund II, exceeding its authentic $25 million goal.
• Earlier than it established its funding fund, FGV Capital created a progress company, not like most enterprise corporations.
• The quantity of belongings that FGV Capital now manages, having raised Fund II, exceeds $60 million.

FGV Capital, the San Francisco-based fintech investor previously generally known as Fiat Ventures, has accomplished its $35 million Fund II, which was oversubscribed and exceeded its authentic $25 million goal.

The brand new fund will increase the agency’s whole belongings underneath administration to greater than $60 million and formally unites Fiat Ventures with its related consultancy, Fiat Progress, underneath the FGV Capital title.

“Fund I confirmed that our mannequin can persistently win entry to prime founders and create significant worth for them. With Fund II, we’re making use of that method at institutional scale. We’re main and co-leading extra rounds, structuring transactions, and demonstrating that the true winners want a associate with a differentiated platform, deep working expertise, and a relentless deal with founder outcomes,” mentioned Marcos Fernandez, co-founder and managing associate at FGV Capital.

The worldwide fintech market is anticipated to reach approximately $460 billion by 2026, with annual progress of virtually 18% persevering with into the early 2030s, as AI instruments for underwriting, fraud detection, and compliance turn out to be extra widespread. FGV thinks that founders on this trade want help with distribution simply as a lot as they want funding.

“Once we compete for a deal, we aren’t simply providing capital. We determine three or 4 areas throughout the firm’s go-to-market technique the place we will instantly present groups, technique, or distribution companions. That has helped us win offers the place founders have been contemplating 5, six or seven different time period sheets,” Fernandez tells Tech Funding Information.

FGV factors to Splitero, a house fairness funding startup, as a living proof. The agency made the primary test into the corporate, led its go-to-market technique from the outset, after which led its Sequence A spherical. Splitero has since expanded to prospects in additional than a dozen states.

“That is one among dozens of examples of firms that we again early after which present an unfair benefit to as they scale. Serial entrepreneurs know that capital is a commodity. They give the impression of being to us to assist them launch and scale their companies,” Fernandez notes.

The agency says it really works actively with 25 to 35 firms at any given time.

A deal with company earlier than fund

Fernandez, Drew Glover, Alex Harris, and Rohit Ramkumar based the agency in 2018 as Fiat Progress, a consultancy that positioned skilled advertising and progress professionals inside fintech firms, and three years later launched the fund underneath the title Fiat Ventures.

The worth of this sequencing is central to FGV Capital’s pitch, although the agency is obvious that the consultancy is just not primarily a deal-sourcing engine.

“Solely a small portion of our funding sourcing comes by means of the consultancy. Most alternatives come by means of our broader ecosystem, together with our occasions, media arm, and community of founders and traders,” Fernandez explains.

As an alternative, the agency argues the benefit is working historical past: 5 years of sample recognition throughout tons of of progress engagements earlier than a greenback of Fund I capital went out the door. Having been up to date in 2026, the agency now gives capital, progress, strategic finance, and recruiting assist underneath one roof slightly than competing on cheque measurement alone.

Greater than 325 firms in fintech, healthtech, and AI have been supported by the staff since 2018, and over 40 firms have been invested in by way of Fund I, Fund II, and co-investment automobiles. The portfolio contains the non-public mortgage platform Splitero, the AI scientific documentation startup Brellium, the insurance coverage information firm Trellis, Sunfish, Doable Finance, and Wagmo — a number of of which have gone on to lift Sequence A and Sequence B rounds from top-tier traders.

Fund II’s backers embody Reinsurance Group of America, MassMutual, Financial institution of America, and the Stellar Improvement Basis, in addition to foundations, funds of funds, household places of work, and high-net-worth people, Fernandez mentioned.

“Our traders and LPs like this as a result of lower-AUM funds drive a better a number of on invested capital, and on the finish of the day, cash-on-cash returns over the fund’s lifecycle,” he added.

Specializing in service over test measurement

FGV Capital is in no way the one agency that mixes working assist with capital.

Mouro Capital, which has the assist of Banco Santander, closed its third $400 million fund in 2026 by leveraging its world deal-flow relationships slightly than counting on an in-house providers staff. Chemistry, based by graduates of Andreessen Horowitz, Index Ventures, and Bessemer Enterprise Companions, calls itself ‘the portfolio providers staff’ for its seed and Sequence A investments.

“There’s been virtually no actual innovation in how enterprise itself works. We flipped that script by constructing a progress and distribution platform first and a fund second. To a conventional enterprise [firm], that sounds disruptive, however we all know that founders need companions who will get within the trenches with them to seek out product-market match, construct sturdy distribution, and scale responsibly. Oversubscribing Fund II and the FGV rebrand demonstrates the success of this mannequin on an even bigger scale,” concluded Glover, co-founder and basic associate at FGV Capital.

FGV’s progress staff works with firms earlier than they turn out to be funding candidates, enabling companions to see traction that the majority funds solely see in a Sequence An information room. In recent times, bigger corporations reminiscent of Andreessen Horowitz and Sequoia have additionally established comparable in-house progress groups.

FGV’s actual take a look at begins now: whether or not a progress platform constructed for a $25 million fund scales cleanly to $35 million, or whether or not the mannequin that received it early entry to founders will get diluted because it competes for bigger, extra contested offers. The rebrand is an announcement of intent. Whether or not the mannequin holds at institutional scale is what the subsequent fund will reply.