The fintech industry is heating up in Australia as of late. Westpac is backing a second AU$50m startup fund for fintech startups in the country. The bank will do so in collaboration with Sydney-based VC firm Reinventure. The hunt for promising Australian fintech startups is in full swing, and it is positive to see Westpac being part of this initiative.
It is not the first venture by Westpac in the fintech industry either. The financial institution had shown its support for the local fintech sector late in 2014 and pumped a lot of money in the Reinventure plan. Now that both parties are doubling down on their efforts, things are looking bright for startups in Australia.
Reinventure and Westpac Are Bullish on Fintech
Raising capital is often a severe roadblock for fintech startups. Finding a venture capitalist, or a bank that takes an interest in the project, is not as straightforward. But with the help of Reinventure and Westpac, that process suddenly becomes a lot smoother. Additionally, this renewed partnership solves the VC problem of committing to a second fund.
With this new capital, the plan for Reinventure is relatively straightforward. The VC firm will continue to make Series A and seed investment in fintech startups. Particularly projects which are compatible with Westpac are of great interest. For these startups, this news is an exciting opportunity to scale rapidly and gain market traction.
Reinventure mentioned how the Australian fintech landscape had evolved tremendously since early 2014. Both the quantity and quality of ventures have increased tenfold. Moreover, all of their initial portfolio companies are showing signs of healthy growth since their first investments. More importantly, all of these companies have received follow-on support from investors.
Westpac sees this effort as a way to forge new partnerships with local entrepreneurs. Additionally, the institution wants to innovate so they can make the banking experience for customers smoother. Thanks to its rapid pace of development, the Australian fintech sector continues to impress established financial players.
It has to be said; Australia is showing a very bullish trend where venture capital is concerned in 2016. Various large funds have been announced and closed throughout the year. This new AU$50m startup fund goes to show financial innovation is thriving in Australia, and will continue to do so for the foreseeable future.
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