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Fintech venture firm Nyca raises $210m for third fund

Suman BhattacharyyabySuman Bhattacharyya
August 2, 2019
in Banking, Payments
Reading Time: 1 min read
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Nyca Partners has closed on $210 million for its third investment fund, a vehicle that will let it continue to support the growth of fintech innovation, David Sica, partner at the New York- and San Francisco-based venture firm, told Bank Innovation.


David Sica of Nyca Partners

“I think there’s still a lot of opportunity,” Sica said. “There’s really good entrepreneurs and teams focused on the space, and there’s a lot of capital to support them.” Nyca’s third fund will target new companies with a focus on merchant payments, alternative credit, ideas in infrastructure, digital advice and financial infrastructure.

Nyca, which was founded by former Citigroup banker Hans Morris in 2014, has made investments in large startups like investment platform Acorns, insurance tech companies Embroker and Ladder, point-of-sale loan company Affirm and AI firm Personetics. When asked if the third fund’s investments will focus more on consumer-facing companies versus business-to-business startups, Sica said it will likely be a mix of the two.

See Also: Nyca’s Sica: Challenger banks poised to take market share from incumbents

“There are many different pockets of fintech, [including] integrated financial services, emerging platforms and the underlying infrastructure that provides the connectivity layer to the existing financial system,” Sica noted. “We also will invest in direct to consumer, when we feel a company has figured out a unique way to acquire customers and build a brand around that.”

Nyca’s first fund, which closed in 2014, raised $30 million and its second fund, which closed in 2016, raised $140 million. Nyca’s model, according to Sica, has been to work with other venture funds to advance shared objectives.

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