Group 11 Closes New $120 Million Fintech Fund

By Luigi Wewege Wednesday, March 17, 2021

Group 11, a venture capital (VC) fund, announced the closure of its fifth fund targeting fintech startups.

Person putting money and lightbulb puzzle pieces together.

Focus on Silicon Valley Fintech Startups

The latest fintech fund secured more than $120 million in the first closing. The “Fund V” is backed by institutional investors, including Migdal Insurance and Harel Group, as well as Menora Mivtachim Insurance, More Investment House, Hachshara Insurance Company, True Capital Management, and a number of family offices from the United States (US) and Israel.

VC Group 11 said the new fund will also prioritize investing in fintech startups based in Silicon Valley. Supporting the new fund will also become available on “TASE UP,” a new platform developed by the Tel Aviv Stock Exchange (TASE).

TASE UP launched in August last year to allow private tech companies, VC funds, as well as funds specializing in real estate to receive investments from institutional and recognized investors.

Group 11 is a VC fund founded by Israeli entrepreneur Dovi Frances, who is considered to be among the top 1% performing funds in the world. Since 2011, the VC has injected more than $200 million in some of the most promising fintech startups.

The company’s portfolio consists of Tipalti, TripActions, HomeLight, SunBit, Next Insurance, Papaya Global, EquityBee, Lili Bank, and others. Frances says that two more “unicorns” — privately held startups valued at over $1 billion — are to be added to the portfolio in the next three months.

“Since the inception of Group 11 a decade ago, the impact of FinTech on transforming and revolutionizing the traditional financial services industry has increased dramatically. The Covid-19 pandemic has further accelerated the FinTech ‘Cambrian Explosion’ and we expect this digitization renaissance to last for decades to come,” said Frances.

Even though it mostly backs US-based startups, around 70% of Group 11’s portfolio is related to Israel and Israeli founders. At the moment, Frances is a board member at several companies backed by VC Group 11 and is also a member of the Advisory Council of Leumi Bank US.

“The opportunities in the financial technology sector have not waned. Covid has accelerated lots of things,” Frances told Bloomberg.

Before Fund V, a number of other Group 11-backed funds closed their latest funding rounds over the past months, including Papaya Global, TripActions, Next Insurance, and Tipalti. Most of these funds reached multi-billion dollar valuations.

Summary

VC fund Group 11 said its fifth fintech fund raised over $120 million in its first funding round. Just like its previous funds, Fund V will also invest primarily in Silicon Valley-based fintech startups.

About the Author


Headshot of Luigi Wewege

Luigi Wewege is the Senior Vice President and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an instructor at the FinTech School which provides online training courses on the latest technology and innovation developments within the financial services industry. Luigi is also the published author of "The Digital Banking Revolution."

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