A fund with ties to the Independent Community Bankers of America and two community banks has raised $55 million to invest in technology ventures.
BankTech Ventures (BTV) said in a press release Tuesday that most of the funds came from community banks. The general partners come from the ICBA, The Venture Center, Hovde Group, Coastal Community Bank and Sunwest Bank.
BTV said it expects to eventually work with more than 150 community banks.
BTV has a partnership with The Venture Center, which has an accelerator program for technology firms.
Participants in the accelerator provide “services banks need, they’re going to keep growing,” Wayne Miller, The Venture Center’s executive director and a BTV general partner, said in the release.
The Venture Center, a nonprofit, evaluates thousands of bank-tech startups annually, accepting 10 startups on a biannual basis. The accelerator puts the startups through a 16-week boot camp where the founders work closely with community bankers to better understand and meet the needs of the banks and end-users.
BTV is targeting $150 million to $200 million for its first fund and expects to do its second close by the end of 2021.
The fund’s other general partners are Eric Sprink, Coastal Community’s CEO; Carson Lappetito, Sunwest’s president; Steve Hovde, Hovde’s chairman and CEO; and Charles Potts, the ICBA’s chief innovation officer.