around banking technology. With general partners from The Venture Center, the Independent Community Bankers of America (“ICBA”), Hovde Group and two leading community banks, Coastal Community Bank and Sunwest Bank, BankTech Ventures looks to partner with premier community banks to identify emerging technologies for investment and use by them.
Supported and endorsed by the ICBA and The Venture Center, which was named Finovate’s 2020 Best Accelerator of the Year, BankTech Ventures is building an ecosystem that pairs community banks with emerging technology companies that can serve banks’ immediate needs whether it be regulatory, customer acquisition, process improvement, or other areas of focus. The Fund ultimately aims to provide its bank investors with the opportunity to obtain significant research & development “spend” at a much lower cost than if undertaken in-house, as well as strong returns from the underlying company investments. With a limited partner base expected to reach over 150 community banks across the US, the strategic value of the fund’s ecosystem for both bank-focused startups and community banks is unprecedented.
“When presented the opportunity to invest in and join the BankTech Ventures partnership, we jumped in right away,” said Alice Frazier, President & CEO of BCT. “BankTech Ventures has assembled the ideal team to identify, evaluate, invest in and align our bank’s success through emerging technologies. We can move forward as an innovative bank in our community, learn about market changes and our customers’ needs at a more rapid rate, and participate in the value created by leading technology companies. It’s a great partnership.”
“Community banks like Bank of Charles Town are so important to the communities they serve, and as they continue to evolve, emerging technologies will play a key role for them and their customers,” said Carey Ransom, Managing Director of BankTech Ventures. “I’m excited to welcome Alice and team from Bank of Charles Town to our partnership in BankTech Ventures. Together and as part of our ecosystem, we will help ensure community banks remain competitive amid a rapidly changing environment.”
BankTech Ventures, LP (www.banktechventures.com) is targeting $150-200MM for its first fund and has reached a first close of $55MM with 60 initial limited partners, including Bank of Charles Town. The fund is already evaluating several investment opportunities. In addition to Ransom, the fund’s other general partners are Eric Sprink, CEO of Coastal Community Bank; Carson Lappetito, President of Sunwest Bank; Steve Hovde, Chairman & CEO of Hovde Group; Charles Potts, Chief Innovation Officer, ICBA; and Wayne Miller, Executive Director, The Venture Center.
About BankTech Ventures, LP.
Established in 2021, BankTech Ventures, LP is the first venture fund created for and by key leaders in community banking, bank technology and fintech. BTV serves the community banking ecosystem through strategic investments, education and collaboration with its limited partners and ICBA members by delivering a de-risked and/or fully vetted network of leading and emerging bank technology companies to enhance a community bank’s value, as well as aim for strong returns from the underlying investments in these companies. Learn more at www.banktechventures.com.