Morris said QED is bullish in the sector regardless of whether prices are up or down, when asked about the upcoming slowdown in funding that has occurred. Founded by Morris e Frank Rotman In 2007, QED started out as a family office but later transformed into a VC fund. QED, initially funded through internal capital, has supported some of the largest fintech startups globally such as Remitly and SoFi in the US, Klarna in Europe and Nubank in Brazil.
“It is clear that there has been a significant cooling in public markets in the United States, which is having an impact on private markets,” Morris said in an exclusive interview with ET. “It will go all the way, and then it will come back again, because fundamentally, we are in the midst of a series of age-old moves that are happening in our industry.”
According to Morris, with positive macroeconomic growth, the mobile revolution, a favorable regulatory regime and an abundance of talent, India it is one of the most important markets for the company outside the United States. QED opened a store in India last year.
Morris, who co-founded and sold Capital One, a consumer-centric lending company in the United States, was on the Forbes Midas Touch 2022 list.
QED has positioned itself as a multi-series investor to infuse capital through pre-seed / seed, series A / B and growth phase. It writes checks starting at $ 1 million and goes up to $ 40-50 million to support companies in the fintech sector.
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The company has already invested $ 150 million in India since last year. These are distributed between the neo-bank Jupiter, the wage access provider Refyne, the open finance company Upswing, the fintech startup FPL Technologies, which operates the digital credit rating platform OneScore, and the edu-fintech startup Financepeer.
In September 2021, QED closed a $ 1.05 billion fund consisting of a $ 550 million VII Fund and a $ 500 million Growth Fund. Globally, the fund has invested in more than 175 companies in 14 countries. The majority of its portfolio is based in the United States.
It will resume its fundraising route next year when it is expected to deploy its current pool of capital. “We will raise a new global fund in the next year,” Morris said.
He declined to give a figure on how much the company will invest in India, but said the region continues to be an important market.
The firm is looking to increase its presence in India by expanding its investment team. “Here we will have a significant team on the ground, focused on Southeast Asia and South Asia in general. But it remains to be decided whether it will be here in Mumbai, Bengaluru or Singapore, ”he said.
The company also wants to venture into Web 3.0 and the cryptocurrency industry, Morris said. “We are carefully evaluating this space. We may not be first and foremost when it comes to investing in the industry. But we’ll wait and see how it turns out, “he said.