TLDR:
- Point72 Ventures, backed by billionaire Steve Cohen, is pivoting away from fintech and crypto investments.
- The firm is laying off five investors focused on fintech and digital assets to shift focus to artificial intelligence and defense technology startups.
Billionaire Steve Cohen’s venture capital arm, Point72 Ventures, is undergoing significant changes as it shifts its investment focus away from fintech and crypto. The firm has laid off five investors who were previously focused on fintech and digital assets. Point72 Ventures is now looking to direct more attention and resources towards investing in artificial intelligence and defense technology startups. This strategic shift comes as the firm evaluates market opportunities and optimizes its portfolio towards what it deems to be the biggest opportunity set.
Point72 Ventures, funded by Cohen within his $30 billion hedge fund Point72 Asset Management, has invested over $1 billion since its inception in 2016. The firm has made more than 100 investments across various sectors, with a significant portion of them in fintech startups. However, as the funding landscape in the fintech sector has shifted in recent months, with valuations decreasing and venture funding down, Point72 Ventures has decided to refocus its investment strategy. Venture funding for artificial intelligence startups, on the other hand, has been on the rise, prompting Point72 Ventures to pivot towards this sector.
The departures of the fintech-focused investors and the pivot towards AI investments signal a new direction for Point72 Ventures. The firm’s notable fintech holdings, such as MX Technologies and Vestwell, may see a change in investment strategies following these shifts. Despite these changes, Point72 Ventures could still consider select fintech opportunities through its remaining teams, like the consumer startup group. However, the departure of key investors in the fintech sector is likely to have an impact on startups in that space, indicating a shift away from fintech and crypto investments at Point72 Ventures.
