Cambrian Ventures Secures $20m for Second Fintech Fund

Cambrian Ventures has raised $20m for its sophomore fintech fund, aiming to invest in early-stage startups in the sector. The firm's first fund, launched in 2018, invested in companies like Robinhood and Stripe. Cambrian Ventures is now looking to replicate its success with its second fund, targeting fintech startups in areas such as payments, lending, and insurance. The fund will focus on backing companies in the early stages of development, providing them with the necessary resources to scale and grow.

Cambrian Ventures, the venture capital firm founded by Rex Salisbury, has successfully raised $20 million for its second fintech fund. The fund aims to invest in early-stage startups in the fintech sector, building on the success of the firm's inaugural $20 million fund launched in 2018. The new fund will focus on supporting companies in areas such as payments, lending, and insurance, providing them with the necessary resources to scale and grow [2].

The first fund, which was launched in 2018, invested in notable companies like Robinhood and Stripe. Salisbury's experience and network have been instrumental in the success of Cambrian Ventures. Prior to founding Cambrian Ventures, Salisbury was a founding member of Andreessen Horowitz's fintech practice and invested in Deel, a company that has since grown into a leader in the payroll and human resource tools space [2].

The new fund will leverage advancements in AI to identify and invest in promising startups. Salisbury believes that AI enables the creation of multi-product companies from day one, allowing startups to build more comprehensive solutions [2]. This approach aligns with the current trend of AI-driven innovation in the fintech sector.

The fintech landscape has seen significant growth and transformation over the years. While interest in fintech has waxed and waned, Salisbury remains optimistic about the sector's potential. He argues that only 1% of global financial services revenues have been captured by fintech, indicating ample opportunities for growth and innovation [2].

Cambrian Ventures' second fund is poised to build on the success of its first fund, which saw about half of its portfolio companies secure Series A funding, a rate considerably higher than the industry average. The firm's focus on finding strong founders with unique product ideas and providing them with the necessary resources to scale is expected to continue with the second fund [2].

The fund's launch comes at a time when the fintech sector is experiencing significant growth and innovation. The Africa Fintech Accelerator, a program launched by Visa, has been supporting high-potential fintech startups across the continent since 2023. The program offers selected ventures access to mentorship, technology, strategic industry connections, and potential funding opportunities [1]. This initiative underscores the broader commitment of global payments leaders to invest in Africa's digital transformation and financial inclusion.

As the fintech sector continues to evolve, Cambrian Ventures' second fund is set to play a significant role in supporting the growth and development of early-stage startups. The firm's focus on identifying and investing in promising companies, along with its commitment to providing the necessary resources for scaling, positions it as a key player in the fintech investment landscape.

References:
[1] https://innovation-village.com/visa-opens-applications-for-fifth-cohort-of-africa-fintech-accelerator/
[2] https://finance.yahoo.com/news/rex-salisbury-cambrian-ventures-raises-144329700.html