NEW YORK : Portage Ventures is seeking to raise up to $1 billion for a structured equity fund that will focus on financing startups in the financial technology sector that are reluctant to take a hit in their valuation amid the market downturn, people familiar with the matter said.
Startups have been reluctant to launch traditional fundraisings in the financial downturn because they would be forced to accept a lower valuation than their previous funding round. Portage is aiming to raise $750 million to $1 billion for the fintech-focused fund, with a $200 million capital commitment, the sources said. The firm is expecting to reach a first close for the fund in November this year, the sources added.
PSC will provide capital in the fintech space in the United States, Canada, and Europe, aiming to invest in companies with a valuation over $500 million and with $100 million to $200 million in revenue, the sources said.