This Week in Fintech: 10,000 Subscribers & A New Venture Fund

The Rise of The Fintech Fund: A Community-Driven Investment Approach

Individuals closely following developments in financial technology are likely familiar with the fintech community – a robust network encompassing founders, investors, employees, and journalists.

Nik Milanović: A Central Figure in Fintech

For the past two and a half years, Nik Milanović has cultivated a significant presence within this community through his newsletter, “This Week in Fintech,” which now boasts over 10,000 subscribers.

Milanović’s experience also includes two years at Google, where he led business development and strategy for Google Pay, and served as a mentor with Techstars. He has consistently worked to foster growth and connection within the global fintech ecosystem.

Beyond the newsletter, Milanović actively sponsors meetups globally, spanning locations from Mexico City to Lagos, Nigeria, facilitating networking opportunities for his “fintech friends.”

A Commitment to Inclusion

Milanović’s dedication extends to promoting inclusivity within the fintech space. His prior role as a researcher at the Stanford Center for the Study of Poverty and Inequality demonstrates this commitment.

He has also contributed articles to TechCrunch, focusing on topics such as developing products to benefit incarcerated individuals.

Introducing The Fintech Fund

Transitioning from angel investing, Milanović is launching a new early-stage fund, aptly named “The Fintech Fund,” with the tagline “by fintech people, for fintech people.”

The fund aims to raise $10 million, having already secured $4 million, and features a diverse group of Limited Partners (LPs).

Notable Investors and Support

Among the LPs are Sheel Mohnot and Jake Gibson of Better Tomorrow Ventures, Jillian Williams from Cowboy Ventures, Sriram Krishnan, founder of Angel Collective Opportunity Fund, and Bain Capital Ventures, alongside founders like Jake Gibson of NerdWallet, Stephany Kirkpatrick of Orum.io, and Mike Dudas of The Block.

Sheel Mohnot of Better Tomorrow Ventures emphasized the power of the community Milanović is building, highlighting its potential to significantly benefit startups.

Mohnot stated that Milanović shares a similar worldview to BTV, recognizing a substantial global opportunity often overlooked by others. He also expressed a desire to support Milanović and gain access to promising companies through their collaboration.

Investment Strategy and Portfolio

The Fintech Fund focuses on investments at the pre-seed and seed stages and has already invested in 10 companies, including Goldfinch, 3Box, Ponto, and Paysail.

Milanović envisions the fund as a community-driven initiative, providing a platform for individuals and institutions deeply involved in fintech to reinvest in the ecosystem.

A 120-Person Fintech Syndicate

The fund also incorporates a 120-person fintech syndicate, comprised of fintech operators and founders. This syndicate allows members to further invest in companies backed by the fund, supporting founders they believe in.

Prioritizing Diversity and Representation

The Fintech Fund is committed to quantitative inclusion goals. It aims for over 25% of its investments, both in terms of dollars and the number of investments, to go to founders from underrepresented backgrounds.

While not implementing quotas for the syndicate, Milanović will track its composition and the fund’s LP base quarterly through surveys to ensure ongoing representation and inclusion.

Hands-On Support for Founders

Milanović emphasizes that The Fintech Fund will provide hands-on support to its portfolio companies.

He differentiates the fund from larger ETFs, highlighting its focus on leveraging the community – including newsletter readers, investors, and the angel syndicate – to offer consulting, referrals for hiring, and introductions to potential customers.

Milanović intends to continue providing resources to founders through his newsletter and events, believing that successful investment requires more than just financial capital.

He believes the community can offer valuable guidance, such as helping founders choose between vendors or identifying qualified candidates for key roles.

Positive Feedback from Portfolio Companies

Liam Burke and Nicole Alonso, founders of Paysail, have praised Milanović’s deep understanding of the fintech landscape and his extensive background in the industry.

Paysail, which utilizes stablecoins for instant global B2B invoicing and payments, recently secured a $4 million seed round led by Uncork Capital, with participation from The Fintech Fund.

The founders also expressed excitement about the breadth of experience offered by the fund’s LPs and the support they anticipate receiving.

Collaboration Over Competition

Mohnot noted that the VCs investing in the fund do not perceive it as a competitive threat.

Milanović advocates for collaboration, rejecting the notion that success requires outperforming others. He believes that collective success is achievable through networking and partnership.

“I believe we can all win together as a network,” Milanović stated. “This fund is a way for everybody working in fintech to win together.” He actively seeks opportunities to collaborate with potential competitors, believing that joint efforts can yield superior results.