Northwestern Mutual announced that it has designated $50 million corporate venture fund that will engage with fintech startups in a move to expand its digital offering and capabilities.
Focusing on the innovation to build greater digital relevance for clients, the initiative makes Northwestern Mutual the latest established financial institution to set up a venture arm dedicated to backing fintech companies.
The release stated that the company will invest ranging between $500K and $3 million that will fund digital solutions to help accelerate innovation and create value for the company's clients. The fund will back young startups that are focused on consumers' changing preferences, reimagining the client experience, the digital health revolution and transformational analytics and technologies.
“We want to continue that momentum and continue to invest in startup companies,” Rebecca Porter, vice president of corporate strategy at Northwestern Mutual and chairwoman of the investment committee for the new fund told Reuters. “We are looking for innovative companies that are going to address clients' need in a new way.”
Northwestern Mutual has had investments and relationships with early stage fintech companies, post the acquisition of personal finance firm LearnVest in 2015. According to the insights provided by CB Insights and KPMG, in the third quarter of 2016, corporates participated in 30 percent of global VC-backed fintech deals for the second consecutive quarter.
“We're bringing together the strength and scale of a 160-year-old Fortune 100 company with leading-edge innovations of startups to transform financial planning through our trusted advisors and relevant digital tools,” Porter added.
