Fintech venture capital firm Group 11, headed by American-Israeli investor Dovi Frances, struck a $50 million deal with global private markets investment firm StepStone Group, allowing StepStone to acquire 27 percent of Group 11’s third fund.
The deal with StepStone comes one year after Group 11 secured $200 million for its fifth fund.
Among the portfolio companies in its third fund are fintech unicorns Tipalti ($8.3 billion valuation), TripActions ($7.25 billion valuation), Next Insurance ($4 billion valuation), HomeLight ($1.6 billion valuation), and Sunbit ($1.1 billion valuation).
The parties closed the deal directly without the involvement of a placement agent or an investment bank.
Founded in 2012 by current managing partner Frances, the Silicon Valley-based VC Group 11 has been an early backer of many fintech companies seeking to evolve the outdated financial services industry. The firm is an early investor in some of Silicon Valley’s most disruptive financial technology companies and currently houses a stable of eight unicorns. The cumulative value of Group 11’s portfolio totals $1.6 billion.
“We are excited to partner with StepStone on this transaction, which we believe is further affirmation of Group 11’s positioning as one of the nation’s leading fintech VC firms. This is just the beginning of a wonderful and fruitful partnership,” said Frances.
“We are thrilled to join Group 11 and Dovi Frances in this partnership as we continue constructing the highest quality portfolios to the benefit of our clients,” said Seyonne Kang, partner at StepStone Group. “Group 11’s track record and portfolio have impressed us, and we look forward to working alongside Group 11 and its management team.”