Founded by former Comptroller of the Currency Gene Ludwig and Live Oak Bancshares CEO Chip Mahan, Canapi launched with its first fund in 2020, securing backing from more than 30 banks and strategic investors for a $545 million fund.

The fund made 20 investments across areas such as fraud and identity, financial infrastructure, lending and credit, payments, and real estate technology. It claims to have helped to facilitate nearly 100 partnerships between its LPs and portfolio companies – including Alloy, Built, Thoropass, and Greenlight.

The so-called Canapi Alliance is now up to 70 members, ranging from community to regional to super regional banks and service providers.

The second fund will continue to make similar investments but also look to target firms working on the governance of AI, cybersecurity, and the intersection of financial services and climate technology.

Says Ludwig: “Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners, creating strong symbiotic value in this important ecosystem.”