Multibillionaire Thomson eyes greater slice of fintech industry

The investment firm for a member of the multibillionaire dynasty behind Thomson Reuters Corp. is looking to ramp up deal-making in New York City as it targets financial sector investments.

Thomvest Ventures, Peter Thomson’s namesake venture capital firm, expects two early-stage investments in New York-based fintech firms to close this month. Those come on the heels of four other recent New York fintech investments, and Thomvest is seeking similar deals for later this year.

There will be “more to come,” Don Butler, managing director of San Francisco-based Thomvest, said in a recent interview. “I’m getting to New York probably every six weeks.”

Butler, 55, manages about $750 million of Thomson’s $10.8 billion fortune. The Canadian family is the 10th richest in the world, according to the Bloomberg Billionaires Index.

Thomson is co-chairman of Woodbridge, an investment firm that manages the wealth originated by his grandfather Roy Thomson’s investments in Canadian and British media outlets. He and his siblings David and Taylor each own 14% of Woodbridge, which in turn owns about two-thirds of Thomson Reuters. (Bloomberg LP, the parent of Bloomberg News, competes with Reuters as a provider of financial news and services.)

'HIGH BAR'

Thomvest Ventures has made more than 80 investments in areas including finance, cybersecurity and marketing for the 58-year-old billionaire since its creation in 1996, putting it among the most prolific backers of Silicon Valley businesses across several economic cycles. SVB Financial Group’s collapse last year caused financial difficulties for several US companies in its portfolio.

Thomvest, which oversaw about $500 million at the start of this year, launched its latest fund of $250 million on Tuesday as it seeks to continue taking advantage of everything from the latest downturn in the venture market to the artificial-intelligence boom, according to a statement.

“We believe that great companies are often born during challenging macroeconomic periods,” Thomson said in the statement. “That potential is as strong today as ever.“

The firm also promoted venture investors Umesh Padval and Nima Wedlake to the role of managing director alongside Butler, who has led Thomvest since its early days.

Thovmvest ramped up its holdings in New York companies during the pandemic, allocating capital to codeless development platform Unqork, financial-documentation business Ocrolus, landlord-banking firm Baselane and financing platform Capchase in 2020 and 2021. 

The venture firm also recently allocated funds to artificial intelligence company Cohere and data-enrichment platform Traction Complete, both based in Thomson’s native Canada.

Butler, a former Lehman Brothers analyst, said New York’s fintech industry has been able to attract high-caliber talent from Wall Street as banks’ strict return-to-office mandates have pushed some workers to look for more flexible employers, while city’s long-time status as a global financial hub helps entice investors.

“You have a high bar to pass if you’re in New York,” he said on regulations for the city’s fintech firms. “That gives you a little more comfort.”

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