Nasdaq Inc., creator of the world’s first electronic stock market, has officially launched its global fintech venture investment program.
Nasdaq Ventures, which will be led by long-time Morgan Stanley executive Gary Offner, will focus on “discovering, investing in and partnering with unique fintech companies,” particularly those aligned with Nasdaq’s long-term objectives in the worldwide capital markets.
Nasdaq Ventures expects to make immediate minority-stake investments, ranging from less than $1 million to roughly $10 million — including seed money to late-stage venture rounds — in fintech companies involved in areas such as machine learning and artificial intelligence; next-generation data, analytics and content; and digital transfer/blockchain.
“Investing in pioneering fintech firms, who are developing unique technologies, continues our history of being a platform and partner of choice for the most innovative companies in the world,” Adena Friedman, president and CEO of Nasdaq, said in a statement April 19.
As part of Nasdaq’s Corporate Strategy division, Nasdaq Ventures also will help accelerate the company’s overall pace of innovation “to ensure our clients continue to benefit from the technologies that are reshaping the capital markets,” Friedman said.
By evaluating, distributing, licensing and integrating disruptive technologies for the long-term benefit of its global clients, Nasdaq will be able to drive growth, she said.
Nasdaq Ventures, which began unofficially in late 2015, will conduct rigorous review of each potential investment. An established internal committee will determine if a partnership is aligned with Nasdaq’s “overall financial and strategic goals, as well as an existing business line or business strategy.”
In turn, that determination will guarantee if Nasdaq’s investment “furthers the company’s competitive and strategic position in the chosen businesses,” according to a company statement.
Offner, who has more than 20 years of investment experience with Morgan Stanley focusing on minority growth capital investments in technology companies, will report to Jean-Jacques Louis, who heads Nasdaq’s Corporate Strategy.