Luxembourg-based investment firm MiddleGame Ventures has announced the initial close of its third fund, which will focus on early-stage investments. The fund will invest in companies across legacy and emerging financial sectors, including adjacent deep-tech and cybersecurity sectors. The new fund is already active in the market.

MiddleGame Ventures’ backers include the European Investment Fund, the Ireland Strategic Investment Fund, and S&P Global. Notable early-stage investments in predecessor MiddleGame funds and former investment platforms include Wayflyer, Keyrock, Ripple, and DriveWealth.

The fund is designed to support digital financial service founders at the Post-Seed, Series A, and Series B investment stages. The European Investment Fund (EIF) and the Ireland Strategic Investment Fund (ISIF) anchored the initial close, committing €32M and €20M, respectively. Returning investors, including S&P Global and the Luxembourg Future Fund (LFF), made additional commitments. New and existing family office investors across Europe and the United States also participated in the initial close. The fund remains open to additional institutional and private investors ahead of a targeted final close of €150M in early 2025.

Luxembourg-based Co-Managing Partner Pascal Bouvier commented:  “We are grateful for the support of our investors who share our conviction that specialist funds with experience working with entrepreneurs, financial institutions, and regulators are best placed to successfully partner with the innovators architecting the new financial services landscape.

“We believe that financial services are on the cusp of a wave of unprecedented innovation, highlighted by the transition from legacy automation tools to a fully digital financial services infrastructure. This transition will enable seamless business models to emerge, removing friction and paving the way for entrepreneurs to build substantial long-term businesses.” 

Marjut Falkstedt, Chief Executive of the EIF, said: “Fintech companies are at the forefront of financial innovation by developing new digital solutions that can play an important role in, among others, improving the accessibility, quality, and security of financial services. That is why we are glad to renew our collaboration with MiddleGame Ventures to support European entrepreneurs and contribute to the digital transition of the financial sector.” 

Sally Moore Executive Vice President and Global Head of Strategy, M&A, and Partnerships at S&P Global, added:  “Collaboration with fintech participants is a key component of our partnerships strategy. The team at MiddleGame Ventures is a valuable source of expertise and insights into emerging innovation, particularly around the digitalization of the financial markets.”