Northwestern Mutual recently announced that it will be launching another venture fund dedicated to financial technology and insurance, reports TechCrunch. The financial security company will reserve a whopping $150 million which will go towards the second venture fun.
Executive vice president and chief innovation officer Souheil Badran emphasized the firm’s commitment to innovating the financial services sector. The newly created fund is expected to enable the company to place more assets in advanced technologies which will give the finance industry a boost.
Called the Northwestern Mutual Future Fund II, the cash pool also aims to facilitate significant growth and innovations. This allows industry players such as Northwestern Mutual to offer clients, representatives and employees new and improved methods and services.
According to the firm, the existing criteria for applicant’s eligibility remains. An investment pool of $500,000 to $5 million remains available for Series A or B-stage agreements dealing with tech and finance. The fund is also available for companies in need of funding to provide ‘new user experiences’ for the industry and its consumers.
Other companies that can qualify for funding include those that seek to improve digital health, data and analytics and other use of technology in strategizing the sector’s operations and offerings.
Northwestern Mutual Future Ventures I was introduced in 2017. It has placed $43 million in 14 start-ups including mobile banking app Chime Bank.
Meanwhile, venture partner Craig Schedler told Crunchbase that the while the funds have the potential for high returns, these are also intended to create a strong network involving its portfolio companies
Aside from the Northwestern Mutual Future Ventures, the financial security company also has another fund Cream City Venture Capital which is worth $5 million. This other pool is intended to back up early-stage companies in southeastern Wisconsin.