Tennessee fintech investor Fintop raises $220m for third fund

Fintop Capital has closed its third fund on $220 million, beating its $200 million target. The Nashville-based venture firm backs B2B software-as-a-service companies in the fintech space.

Fintop did not disclose the names of Fintop Fund III’s limited partners. The new vehicle has already invested in five companies, including Amaryllis, Compliance.ai, Freight Science, Plinqit and Xelix.

Founded in 2016, Fintop has raised more than $700 million to date for three flagship funds and two other funds with a special focus on banking technology and the blockchain. The firm raised $50 million for its debut fund in 2017 and $126 million for its sophomore fund in 2020, according to PitchBook.

Separately, Fintop has teamed with an affiliate of Jacobs Asset Management (JAM) on two funds. JAM FINTOP Banktech Fund raised $150 million in 2021, while JAM FINTOP Blockchain held a first close on $110 million for a fund with a hard-cap of $200 million, according to a press release.

“We remain committed to capital-efficient entrepreneurs that are building great businesses in fintech, and this new fund will allow us to make bigger investments in more companies,” Fintop managing partner Joe Maxwell said in a statement. “As operators, we understand the unique challenges entrepreneurs are facing in light of the economic downturn, as we’ve been through this cycle ourselves multiple times.”

In addition to announcing its new fund, Fintop has named Jared Winegrad and Chris Haley as partners. Winegrad, a founding member of Fintop, was previously the director of finance and operations at a small venture studio in Nashville. Haley is a fintech operator with executive experience at companies like Black Diamond and Knowledge Infusion.

Fintop has offices in Nashville, St Louis, New York City, Jacksonville, Florida and New Jersey.