Venture capitalist (VC) firm Index Ventures is on its way to earn $1.6 billion from its early investments in B2B FinTech, according to Forbes reports Monday (June 11). Index Ventures’ portfolio includes iZettle and Adyen, with unconfirmed reports of a Funding Circle initial public offering (IPO) that could push Index Ventures into the $2 billion mark.
Forbes reports highlighted the geography of the FinTechs — all based in Europe — as exemplary of the market’s industry strength. But the companies that secured early investments from Index Ventures are also operating in the B2B FinTech realm, showcasing the rising popularity of enterprise-targeting companies with investors.
Later this month, Adyen, which provides a payment platform with integrated performance tracking and risk mitigation services for businesses, will launch its IPO, with analysts estimating the company’s equity valuation of up to $8.3 billion. Its float could fetch $1 billion.
In addition, iZettle made headlines with its $2.2 billion price tag when payments giant PayPalacquired the company, which similarly provides payment tools for business customers that include invoicing, analytics and access to business financing.
In an interview with Forbes, Co-founder of Index Ventures Neil Rimer said the industry is particularly attractive to investors, in part, because of its size.
He said, “The beauty of these industries, unlike most others, is that you can be less than 1 percent of your target market, even your domestic target market, and still be a business valued in the billions. Because the markets that these guys are playing in aren’t denominated in billions, but trillions.”
Alternative lending platform Funding Circle— which, according to Forbes, has already facilitated $4.56 billion in small business loans via its marketplace platform — is rumored to be preparing an IPO later this year. Analysts estimate the company could be worth $2.68 billion — Index Ventures is one of its largest backers, reports noted.
However, Forbes said Rimer did not divulge any information about Funding Circle’s future plans.