Fiat Ventures is bringing its investment and growth advisory businesses under one identity, FGV Capital, while rolling out a $35 million second venture fund that has already invested in 13 companies.
The move combines Fiat Ventures with the consultancy operation previously known as Fiat Growth. The newly branded FGV Capital will continue focusing on fintech while building closer links between venture investing, growth support and its network of industry relationships.
General partners Marcos Fernandez and Drew Glover see the combined structure as a way to give founders access to more than capital. The advisory side has historically worked with startups on scaling their businesses and developing go-to-market strategies, while also connecting clients with industry executives.
That network is now becoming a more visible part of FGV Capital’s investment proposition.
Glover said the connection between the two businesses has already helped the firm secure positions on startup cap tables, with founders seeing potential value in gaining access to the advisory network alongside an investment.
The two operations, however, will remain separate entities. Glover said FGV has established clear processes intended to prevent advisory relationships from influencing investment decisions.
“The goal is to use the broader FGV infrastructure to give our investment team better information and deeper context, not influence the outcome,” Glover said.
Fund II broadens the fintech thesis
FGV Capital’s $35 million Fund II will look beyond standalone fintech businesses and target opportunities where financial technology intersects with areas including artificial intelligence, healthcare and commerce.
The fund took about 18 months to raise.
FGV also sought limited partners that could contribute more than funding alone, with an emphasis on investors capable of providing business guidance and potentially supporting companies within the portfolio.
Limited partners in Fund II include Reinsurance Group of America, MassMutual and Bank of America.
The structure reflects FGV’s wider effort to connect investors, startups and advisory relationships. The firm also has a programme designed to help companies in its limited partners’ portfolios scale and can introduce LPs to companies working with its advisory business when partnership opportunities emerge.
Fernandez described the approach as a “full-stack model” in which different parts of the FGV network can create opportunities for each other while continuing to operate independently.
“Companies we invest in can become clients we help scale. Companies we work with can become investments. LPs can become customers or partners to the portfolio,” Fernandez said.
$1 million to $1.5 million checks planned
Fund II is expected to invest between $1 million and $1.5 million in each company.
FGV plans to back at least 25 companies through the fund over a two-year period. Thirteen investments have already been made, meaning more than half of the fund’s minimum target company count has already been reached.
The new vehicle follows FGV’s $25 million first fund.
Across its investment activity, the firm has backed roughly 40 companies to date. Its portfolio includes pet insurance company Wagmo and lending company Possible Finance.
The combination of the venture and advisory businesses gives FGV Capital a model in which capital is only one part of its relationship with founders. The firm is positioning its growth expertise, industry connections and limited partner network as additional resources that portfolio companies can potentially draw on.
For Fernandez, the objective is to create an ecosystem in which those connections reinforce one another.
“The goal is to build an ecosystem where capital, distribution, and relationships compound and where founders and investors have more ways to win together,” he said.
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