Ribbit is targeting a $420 million fintech fund
(Source: businessinsider.com)

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(Original link: businessinsider.com)

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Ribbit Capital, a global venture capital firm focused on fintech, is targeting $420 million for its fifth fund, per a filing with the US Securities and Exchange Commission (SEC). This would represent a 40% increase on the $300 million it raised for its fourth fund.
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Ribbit was founded in 2012, and it's built up an impressive portfolio of fintech bets since then: It's an investor in cryptocurrency exchange Coinbase, now valued at $8 billion ; trading disruptor Robinhood, which had a $6 billion valuation after its latest funding round; Root Insurance, which recently joined the unicorn club ; and Credit Karma, valued at $4 billion .
In addition to financial investment, Ribbit offers startups valuable partnerships and expertise. The firm's investors include Spanish banking giant BBVA, Silicon Valley Bank, Sequoia Heritage, and wealth management firm Iconic Capital, which boasts big-name clients like Mark Zuckerberg and LinkedIn cofounder Reid Hoffman. Additionally, Ribbit has some impressive individual backers, including David Lawee of Google Capital.
Given investment in a VC fund typically requires backers to give startups business advice and support, Ribbit's investor list means its portfolio companies also get a plethora of opportunities to secure impressive partners and benefit from their industry knowledge — for instance, when Ribbit invested in Credit Karma, so did Google Capital. By facilitating these relationships, Ribbit is likely to provide the fintechs it backs with its latest fund a strong foundation for success.
Ribbit's aim of $420 million is restrained, and this seems like a good idea.Global VC investment in fintechs for the first half of 2018 stood at $26 billion, already higher than funding in any year prior, per data from CB Insights . For the whole of 2017, for example, $16.7 billion was invested in fintechs by VCs — 56% less than the first half of 2018 — and even 2016, the record-year prior to 2018, only saw $18.7 billion invested throughout the year.
Therefore, despite Ribbit's latest fund being a 40% markup on its previous $300 million raise, this is a relatively conservative goal. Especially when considering that it has already backed 10 fintech unicorns, Ribbit could very well raise significantly more than that sum. However, this restraint seems wise, as it should allow the VC remain targeted in its investments — a strategy that has borne abundantly so far....

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