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QED Investors to Exercise Extremely Disciplined Investing for New Funds

QED Investors to Exercise  Extremely Disciplined  Investing for New Funds

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Weekly Fintech Roundup: Q&A with QED Managing Partner Nigel Morris, M1 Launches High-Yield Savings Account, and Hosts City Spotlight Event in Atlanta

Welcome to The Interchange! Our weekly newsletter keeps you up-to-date on all the latest fintech news, from fundraising to trends to analysis of particular spaces and companies. This week, we cover QED Investors’ new funds, interview their co-founder Nigel Morris, and report on M1’s new high-yield savings account. We also highlight ‘s upcoming City Spotlight event in Atlanta.

Q&A with Nigel Morris

Last week, QED Investors raised $925 million across two new funds to back fintech startups globally. We sat down with Nigel Morris, co-founder and managing partner, to discuss the fund closures in more detail. Here are the key takeaways from our Q&A with Morris:

– QED’s growth funds are for companies that have already raised an early-stage round, typically after a Series A.
– QED had five portfolio companies IPO in 2021 and is spending a lot of time with its later-stage portfolio companies to prepare them for a sale or IPO.
– QED is particularly bullish on embedded finance, counter-cyclical businesses, blockchain technologies and infrastructure, insurtech, and proptech. It is also excited about emerging markets, like LatAm, Africa, and India and Southeast Asia, where financial inclusion remains a crucial challenge.
– Morris acknowledges that valuations in fintech became unsustainable during the pandemic but believes that QED’s focus on lasting, durable businesses with strong fundamental economics will stand the test of time.
– QED plans to invest in approximately 35 to 45 companies out of its early-stage fund and around 20 companies out of its growth fund.

M1 Launches High-Yield Savings Account

M1, a finance app offering automated investing, borrowing, and banking products, has launched a new high-yield savings account with a 5% annual percentage yield (APY). M1 follows in the footsteps of neobank Step, which also announced a 5% savings account rate last week. However, to qualify for the 5% rate, customers must have an active membership with M1 Plus. M1 is offering three months of M1 Plus for free as an incentive to try it out.

Hosts City Spotlight Event in Atlanta

is hosting a City Spotlight event in Atlanta on June 7. The event will feature Ryan Glover, co-founder of the fintech Greenwood, and a panel that examines the venture ecosystem within the Atlanta region and identifies the best ways to raise and meet with local venture capitalists. Early-stage Atlanta-based founders have the opportunity to pitch to a panel of guest investors/judges for the chance to win a free booth at Disrupt to exhibit their company in the startup alley. Register here.

FAQ

Q: What is The Interchange?
A: The Interchange is a weekly newsletter that covers all the latest fintech news, from fundraising to trends to analysis of particular spaces and companies.

Q: Who is QED Investors?
A: QED Investors is a global VC firm that exclusively invests in companies building financial technology. It recently raised $925 million across two new funds to back fintech startups globally.

Q: What is M1?
A: M1 is a finance app offering automated investing, borrowing, and banking products. It recently launched a new high-yield savings account with a 5% APY.

Q: What is ‘s City Spotlight event?
A: ‘s City Spotlight event is a virtual event that focuses on a particular city’s startup ecosystem. The upcoming event on June 7 in Atlanta will feature guest speakers and a panel discussion on the venture ecosystem in Atlanta. Early-stage Atlanta-based founders can also pitch to a panel of guest investors/judges for the chance to win a free booth at Disrupt to exhibit their company in the startup alley.

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