BBVA gets $250m of corporate venture capital to Propel

Spain-based financial services firm BBVA increased the size of its specialist financial technology fund from $100m to $250m yesterday and will invest the cash through a partnership with Propel Venture Partners.

BBVA has until now been investing out of BBVA Ventures, the $100m fintech fund it formed in 2013.

Propel is a San Francisco-based venture capital firm newly launched by Jay Reinemann and Tom Whiteaker, formerly executive directors of BBVA Ventures, and Ryan Gilbert, the co-founder and ex-CEO of online small business lender Better Finance.

The three, who are acting as Propel’s managing partners, are being joined by senior associate David Mort and analyst Ceci Alvarez.

The firm, which is recruiting for a London office, will take on a BBVA Ventures portfolio that includes unicorns DocuSign, Prosper and Taulia, as well as the remainder of the $100m committed three years ago.

Reinemann said: “Propel believes that the future of financial services will be realised by rethinking and rebuilding, not merely disrupting. We look forward to partnering with energetic entrepreneurs for the long term, driving ideas forward together, backed by BBVA and its commitment to support digital change in financial services.”

Propel will look to invest in early and late-stage fintech companies, including those developing payments, credit, insurance, wealth management, e-commerce, security and compliance technology.

Teppo Paavola, chief development officer of BBVA, said: “In an increasingly competitive fintech venture capital environment, we believe that our increased capital, Propel’s independence and a presence in London can enable us to invest in the best fintech startups and better support BBVA’s vision of using technology to change financial services for the benefit of the customer.”

– Photo courtesy of BBVA (L-R: Jay Reineman, Thomas Whiteaker, Ceci Alvarez, Ryan Gilbert, David Mort)