The firm made the investment from its 2008-vintage second fund, which gathered €113m from investors including CAM Private Equity, Capital Dynamics and Morgan Stanley Alternative Investment Partners.
Finanzchef24 has so far focused on liability insurance, content insurance and bank accounts for businesses, but said it plans to expand its range in the next few months.
Waldemar Jantz, a partner at Target, said, “The overall situation at Finanzchef24 convinced us.
“We are confident that the financial services sector is ready for more innovation.”
The start-up was backed from inception by Robert Haselsteiner and Marcus Wolsdorf, the founders of Interhyp, whose investment company HW Capital began investing in Finanzchef24 at the seed stage.
Wolsdorf said, “The conditions in the market for business insurance remind us of the situation in the mortgage space 13 years ago.
“We also see a lot of parallels to Interhyp in Finanzchef24’s business model, which is why we decided to be active seed investors and support this founding team.”
As well as IT, and web businesses Target also invests in companies in the semiconductor, environmental, medical and nanotech industries.
Target’s last reported investment was in June 2012 when it led a “seven figure” Series A round for German technology company Theva Dünnschichttechnik.
Theva, a specialist in second generation high temperature superconductors, said the funding would support development of production lines for tape for use in electrical power engineering applications.
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