Finstar Financial Group, an international private equity group, announced it will invest USD150m into new financial technology startups over the next five years.
The money will also be used for research and development (R&D) within the group’s portfolio companies.
Founded in 1996 and led by Oleg Boyko, Chairman, Finstar has experience in launching startups, corporate restructuring and expansion projects operating in the financial services, IT, consumer retail and real estate sectors.
Over the past two years, the group has started strategic cooperation with European fintech companies such as Spotcap, Euroloan, Viventor and Rocket10. It has also expanded its collaboration with fintech entrepreneurs through FinstarLabs, which focused its efforts on developing fintech, adtech and big data innovations, as well as identifying, investing in, and incubating leading fintech start-ups and entrepreneurs.
In 2015, Finstar launched its own portfolio company, Digital Finance International, with the aim of applying the most advanced technological solutions to deliver tailored consumer lending solutions globally.
Primary markets are Europe, Latin America, South-East and South Asia.
According to Boyko, the firm is targeting three to six deals per year, in the seed to Series A rounds, typically ranging from USD500k to USD30m while the R&D investment is about pushing financial technology further and leveraging that innovation across its fintech portfolio.