SGVC, a Los Angeles-based venture capital firm, has announced an oversubscribed closing of its third fund at $51 million. Similar to its prior funds, SGVC Fund III will focus primarily on early stage investments in Silicon Valley-based financial technology software companies.
Founded in 2012 by managing partner, Dovi Frances, SGVC focuses on early stage investments in category defining software companies disrupting the $16 trillion global financial services industry. SGVC was an early investor in breakout financial technology companies such as: TripActions, SoFi, Addepar, HomeLight, Next Insurance, Sunbit, and Tipalti.
SGVC Fund III is anchored by investors Hachschara Insurance Company, True Capital Management, Manhattan West Asset Management, as well as Leumi Investment Services Inc., which served as the fund’s placement agent.
SGVC closes its third fund on the heels of high-profile acquisitions of three of its portfolio companies in the past year alone: Loop Commerce by Synchrony Financial, SkyGiraffe by ServiceNow, and Redkix by Facebook.
In addition to providing early stage capital, SGVC continuously seeks to add value to its entrepreneurs by drawing on its team’s extensive financial services expertise. SGVC also utilizes a limited partners base of over 120 high profile entrepreneurs and prominent Fortune 500 executives.
“Since our inception, SGVC has operated under a somewhat contrarian investment thesis,” says Dovi Frances, “We opted to build subject-matter expertise and invest predominantly in early stage financial technology. This approach has proven fortuitous as we are now in an era where institutional money has flooded Silicon Valley while inflating late-stage valuations in a radical and non-sustainable fashion. We’ve insisted on maintaining our investment focus and our fund size knowing that our value-add, returns, and our opportunities lie within early stage deals.”
SGVC has achieved exceptional performance and returns with both SGVC Fund I and Fund II beating Cambridge Associates’ top quartile venture capital benchmark1 for their respective 2012 and 2014 vintages.
“SGVC’s boutique approach to investing, coupled with its industry expertise, positions them to seize upon the ongoing fintech revolution,” says Jane Kizhner, Head of Product Development at Bank Leumi USA, “We are pleased to have our Private Banking clientele join SGVC Fund III.”
With over $150 million in assets under management, SGVC has been a stronghold amongst financial technology investors in recent years. As both funds before it, SGVC Fund III will continue to seek to create value by identifying and backing disruptive software companies poised to redefine the financial services industry.