Opportunities to allocate capital directly are more prevalent now than ever, and family offices are at the center of this growing trend. In utilizing the FINTRX family office data and research platform, which provides intel into thousands of direct deal transactions made by 3,030+ family offices worldwide, we explore three family offices directly investing in fintech companies.
1. Temerity Capital Partners (Sandler Family Office)
Founded in 2015, Temerity Capital Partners (Sandler Family Office) is a Washington, DC-based single-family office managing the assets of Andy Sandler and his family. Sandler is the founder and Chairman of Treliant, a financial services management consulting firm. Sandler is also the founder and CEO of Asurity Technologies, a software firm that provides automated compliance management solutions. Today, Temerity Capital invests across several asset classes, including public equity, hedge funds, private equity, venture capital, and direct real estate transactions. The firm also invests in emerging companies and esoteric markets. Sectors and industries of interest include technology, FinTech, RegTech, biotechnology, transportation, healthcare, artificial intelligence, machine learning, and energy. Temerity allocates to third-party funds in sectors outside of their expertise. The firm is agnostic to fund size but tends to avoid funds that operate in crowded capital environments.
Temerity's venture capital strategy focuses on early-stage companies operating in the financial services space, with a focus on FinTech and RegTech. In June 2015, Temerity Capital Partners directly invested in Sipree, Inc., a San Francisco-based fintech company offering focused on radically improving the speed, security, and convenience of payments to customers and vendors. Sipree, Inc. was founded as an outgrowth of strategic planning at PayPal and offers the only Enterprise SaaS that streamlines payouts and provides consumers with unprecedented choice in their receipt of money.
In September 2015, Temerity Capital made a direct transaction in Exactuals, a leading provider of innovative solutions for payments and metadata issues regarding entertainment, insurance, and more. Headquartered in Los Angeles, California (with additional offices in Nashville and New York) Exactuals is an RBC company and wholly-owned subsidiary of City National Bank Member FDIC. In June 2017, Temerity Capital directly invested in Rabbet, a construction finance platform that intelligently parses through documents and connects information for reduced administrative burden and faster funding. Rabbet brings efficiency, accuracy, and transparency to the complex construction finance industry.
In March 2018, Temerity Capital directly invested in Ascent Technologies, an AI-driven regulatory knowledge platform that streamlines the most error-prone parts of compliance. By merging AI-driven technology with human expertise, Ascent’s solutions help financial firms effectively manage regulatory change and reduce their risk — at a fraction of the time and cost. Temerity made a follow-on investment in this company in November 2019. In October 2020, Temerity Capital directly invested in Reserve Trust, a Denver, Colorado-based fintech trust company providing payment services that financial institutions have previously only been able to obtain from correspondent and sponsor banks. Temerity also makes direct real estate investments, with a focus on urban and suburban residential/mixed-use projects in the United States.
2. Saidler & Co. Family Office (Martin Saidler Family Office)
Founded in 2013, Saidler & Co. Family Office (Martin Saidler Family Office) is a Zug, Switzerland-based single-family office managing the assets of Swiss tech entrepreneur Martin Saidler and his family. Saidler founded Centralway Numbrs (now known as Numbrs Personal Finance AG), a tech company backing a mobile banking app, in 2011, and serves as its Chief Executive. The group invests across a range of asset classes, regions, and sectors including digital financial services, fintech, AI and machine learning, technology, and real estate industries. Saidler & Co. made additional follow-on investments in August 2020 and January 2021.
In May 2013, Saidler & Co. Family Office directly invested in LendingClub, a US peer-to-peer lending company, headquartered in San Francisco, California. Members can gain access to a broad range of financial products and services through a technology-driven platform, designed to help pay less when borrowing and earn more when saving. Since 2007, more than 3 million members have joined the Club. Three months later, Saidler & Co. made a direct transaction in Standard Treasury, a privately held company helping banks harness the power of developer ecosystems by building, hosting, and supporting white-labeled and co-branded developer platforms for banks worldwide.
In April 2014, Saidler & Co. made a direct investment in BS Banksysteme AG, a Germany-based provider of software solutions in banking systems and finance management for banks, financial institutions, and financial management. Saidler & Co. Family Office has partnered with leading universities in Europe and Israel, such as the Weizmann Institute. Besides the Zug office, Saidler & Co. manages offices in Zurich, London, Luxembourg, and Tel Aviv.
3. Continental Investors (Philip J. Purcell Family Office)
Established in 2006, Continental Investors (Philip J. Purcell Family Office) is a Chicago, IL-based single-family office that serves as the investment vehicle for Philip J. Purcell and his family. Mr. Purcell was the Chairman and CEO of Morgan Stanley until 2005, and also served as the Chairman and CEO of Dean Witter, Discover & Co from 1986 to 1997. Continental Investors make private equity and venture capital investments, with a core focus on the FinTech space. The firm seeks both emerging and established growth platforms, with a focus on seed and early-stage investments. Sectors and industries of interest include software, financial services, technology, business services, investment management, food and beverage, internet, consumer products, online platforms, and more. Continental Investor's typical check size ranges from $2M to $12M, and the firm will act as both the lead or non-lead investor.
In October 2015, Continental Investors directly invested in CampusLogic, a student financial success platform that simplifies the student journey, driving access, informed borrowing, and completion. CampusLogic’s Student Financial Success model supports degree completion for millions of students at over 750 schools across America. In April 2019, Continental Investors made a direct transaction in Sezzle, a payments company on a mission to financially empower the next generation. Sezzle’s payment platform increases the purchasing power for millions of consumers by offering interest-free installment plans at online stores and in-store locations. As the only B Corp in fintech, Sezzle proves that all industries - even payments - can do their part to provide solutions and make a positive impact. In October 2020, Continental Investors directly invested in Gig Wage, a privately held fintech company based in Dallas, Texas. The Gig Wage platform is designed for innovators who want a simplified way of managing contractor payments so they can recruit and retain world-class talent and modern contractor commerce.
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