Top 5 Fintech VCs to Watch in 2024

Fintech Startup Investment Trends

A resurgence in global investment within the fintech startup sector is currently being observed. KPMG recently released its Pulse of Fintech report, covering the latter half of 2024.

The report indicates that investment levels increased to $25.9 billion during the fourth quarter of 2024, a rise from the $18 billion recorded in the preceding third quarter.

Current Investment Landscape

While the current levels don't quite match the heightened excitement of previous years, particularly the peak activity seen in 2021, venture capital firms continue to demonstrate significant confidence in the fintech space.

Evidence of ongoing interest is apparent in the volume of communications received, suggesting sustained activity from investors.

Ventures Bullish on Fintech

The following is a selection of venture capital firms that are maintaining a positive outlook on fintech investments:

• Details regarding specific VCs will be added here as they become available.
• Further research is ongoing to identify additional firms with strong fintech portfolios.
• This list represents a snapshot of current investor sentiment within the industry.

Fintech remains a key area of focus for many investors despite recent market fluctuations.

Infinity Ventures

About the VC: Infinity Ventures is an early-stage venture capital firm with a global focus on fintech startups. The firm was established three years ago by Jeremy Jonker, Jay Ganatra, and Mario Ruiz.

Prior to founding Infinity Ventures, the partners departed from PayPal Ventures in May 2021. Their inaugural fund, totaling $158 million, reached its final close in October 2021.

In October 2024, the firm successfully secured $184 million for Fund II. This brings the total assets under management to over $350 million.

Investment Parameters

Average check size: The investment amount varies according to the startup’s stage of development.

• Pre-seed stage: $1-2 million
• Seed stage: $2-4 million
• Series A stage: $5-10 million

Portfolio Highlights

Notable investments: Infinity Ventures has invested in a range of promising companies, including Rainforest, Pagos, and Mendel.

Most recent big investment: A recent significant investment was made in SimpleClosure, a platform designed to facilitate business closures.

The firm concentrates its investments on businesses operating within the B2B fintech and commerce enablement sectors.

Better Tomorrow Ventures

Better Tomorrow Ventures is a venture capital firm established in 2019. It was founded by Jake Gibson, a co-founder of NerdWallet, and Sheel Mohnot.

The firm concentrates on providing funding to fintech companies during their pre-seed and seed stages, with a global investment scope.

Fund Details

Currently, Better Tomorrow Ventures manages assets totaling $225 million.

Investment Parameters

The typical investment amount provided by the firm varies between $500,000 and $4 million.

Portfolio Companies

Better Tomorrow Ventures has made notable investments in several companies. These include Unit, Relay, Coast, Mendel, and Charlie.

Recent Activity

A recent significant investment undertaken by Better Tomorrow Ventures was in Basis. BTV spearheaded the seed funding round, while Khosla Ventures led the Series A round.

Pitching Advice

Sheel Mohnot has offered guidance for those seeking investment. He suggests crafting a compelling introduction to capture their attention.

According to Mohnot, the firm is receptive to cold emails, and he even shared an example of a successful cold email pitch.

The Fintech Fund

Established in 2022, The Fintech Fund is a venture capital firm specializing in the fintech sector. It was founded by Nik Milanović, who also authors the “This Week in Fintech” newsletter.

The fund concentrates its investments on companies operating within the financial technology space, providing capital during the pre-seed and seed funding rounds, with a global reach.

Fund Details and Investment Strategy

In September of the previous year, the firm successfully finalized its second fund, totaling $10 million in commitments.

Average check sizes typically fall between $200,000 and $400,000, demonstrating a commitment to supporting early-stage ventures.

Portfolio Highlights

The Fintech Fund’s investment portfolio includes several promising companies. Among these are Rainforest, Unit, Cascading AI, and Ansa.

Their most recent significant investment was made in WiseLayer, further solidifying their position in the fintech ecosystem.

Investor Approach

According to Milanović, The Fintech Fund distinguishes itself through a highly engaged and supportive investment style.

Founders seeking active participation from their investors will find a valuable partner in this firm. Milanović previously explained to TechCrunch that while numerous ETFs offer substantial investments, their primary objective is to cultivate a robust network.

This network encompasses newsletter subscribers, fund investors, and an angel syndicate, ensuring that funding from The Fintech Fund extends beyond mere capital. It also provides access to valuable consulting services, referrals for new talent, and introductions to potential customers.

TTV Capital

About the Firm: TTV Capital is a venture capital firm headquartered in Atlanta. They specialize in providing funding to companies in their initial stages of development, concentrating on traditional financial technology, businesses leveraging fintech, and innovations shaping the future of the fintech landscape.

The firm currently manages assets exceeding $750 million.

Typical Investment Size: TTV Capital’s investments generally fall between $2 million and $8 million per company.

Notable Portfolio Companies: Their investment portfolio includes prominent names such as Green Dot, Bill.com, and Greenlight.

Recent Investments: Among their more recent investments are companies like Charlie and Payabli.

Lizzie (Guynn) Hartley, a partner at TTV Capital, shared with TechCrunch her preference for initial pitch meetings to be conducted via video conference.

She emphasized the importance of founders being able to clearly define the problem their company addresses. A concise and easily understood explanation of this problem is highly valued. Furthermore, Hartley looks for founders who can comprehensively demonstrate the customer experience and validate the value proposition that justifies customer payment for their product or service.

This thorough understanding of the customer journey is crucial in building investor confidence.

Key Pitching Considerations

• Founders should articulate the problem they solve with clarity.
• A demonstrable understanding of the end-to-end customer workflow is essential.
• Proof of customer benefit and willingness to pay is highly regarded.

QED Investors

About the VC: For more than ten years, this firm has focused solely on providing capital to companies developing financial technology solutions. Their investment scope ranges from the pre-seed stage through Series A funding rounds. Currently, QED Investors manages assets totaling $4 billion.

In 2023, QED Investors revealed the successful completion of a $925 million fundraising effort, distributed across two new funds designed to support fintech startups on a global scale. This included a $650 million fund dedicated to early-stage ventures and a $275 million fund for growth-stage companies.

Nigel Morris, managing partner and co-founder, communicated to TechCrunch following the firm’s most recent fund closure that QED anticipated making approximately 40 investments from the early-stage fund.

Average check size: Investments typically range from $15 million to $20 million.

Major investments: Notable portfolio companies include Credit Karma – where QED provided the initial institutional funding – as well as Creditas, Nubank, and SoFi.

Most recent major investment: Recent investments have been made in Kin Insurance, One Card, and Moniepoint.

QED’s investment strategy centers around embedded finance, cross-border payments, and wealth management technologies, with a growing interest in AI applications. Approximately 50% of QED’s portfolio companies are based in the U.S. The firm also maintains a significant presence in LatAm, Europe, Southeast Asia, and Africa, and is actively exploring opportunities within the Middle East. A recent investment in Japan marked the firm’s first venture in that country.

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