Boutique venture capital firm QED Investors recently announced two new ventures that further their goal of investing in disruptive, early-stage financial services companies. Last December, the firm revealed that it has extended its existing partnership with Scotiabank and launched a second fund, QED LatAm Fund II, LP, aimed at bolstering Latin America’s emerging fintech sector. QED Investors followed this up with its statement last month that it has participated in personal loan and credit card company LendUp’s latest round of financing.
QED Investors and Scotiabank first embarked on their Latin American investment partnership in 2016. Together, the venture capital firm and the Canadian bank and financial services provider have already invested in several fintech companies across Latin America. Through the establishment of their second joint fund, the two companies are planning to continue their investment in and promotion of innovative and growing fintech start-ups in the region.
QED Investors’ continued joint venture with Scotiabank builds upon the firm’s existing Latin American investments, with a portfolio that includes Guiabolso, Nubank, Coru, Creditas, Konfio, Tienda Pago, Xerpa, Credijusto, and Zinobe.
As with Scotiabank, QED Investors’ most recent investment in LendUp builds upon past investments; the firm participated in the San Francisco-based company’s previous round of funding in 2017. Having raised over $361 million in previous funding rounds, LendUp has announced that it plans to use the proceeds of its latest funding to spin off its credit card arm. The new stand-alone entity will be named Mission Lane. By spinning off its credit card business, LendUp will be able to focus its efforts on its core offerings of personal loans, savings and gamified financial education.
QED Investors was founded in 2008 by Frank Rotman and Nigel Morris, both of whom were previously at Capital One. The firm is headquartered in Alexandria, Virginia. It seeks to make investments in high-growth companies based in the United States, United Kingdom and Latin America; past key investments include ClearScore, Prosper, SoFi, Credit Karma, Avant, Remitly, GreenSky and Nubank.