VC Sheel Mohnot on Twitter, Fintech & AI Startups

Sheel Mohnot on Fintech, Social Media, and the AI Revolution

For those engaged with the fintech landscape on X, the account of Sheel Mohnot, co-founder and general partner of Better Tomorrow Ventures, is likely familiar.

Mohnot has cultivated a substantial following on the social media platform, exceeding 150,000 users. Notably, a significant portion of his posts extend beyond the realm of venture capital.

The Founding of Better Tomorrow Ventures

Mohnot established Better Tomorrow Ventures (BTV) following his involvement in co-founding several companies, including FeeFighters, which was acquired by Groupon in 2012.

BTV currently manages $300 million in assets, with a primary focus on pre-seed and seed stage investments within the fintech sector. The firm also operates an accelerator program known as The Mint.

Investment Portfolio and Angel Investing

Since its launch in November 2019, BTV has provided funding to companies such as AngelList, Charlie, Coast, and Unit. Furthermore, Mohnot has independently engaged in angel investing for over a decade, supporting ventures like Flexport, Ironclad, Ethos Insurance, and Apartment List.

An interview with Mohnot was conducted for the Equity Podcast, covering topics such as his strategies for building a large following on X through viral content, his unexpected appearance in a Justin Bieber music video, his perspectives on promising areas within fintech, and his assessment of artificial intelligence's practical applications in the fintech industry.

The following transcript has been condensed and edited for improved clarity.

Defining Fintech at Better Tomorrow Ventures

Beyond your presence as a social media personality, your core role involves investing in fintech startups through Better Tomorrow Ventures. Could you briefly outline how BTV defines a “fintech company”?

Our definition of fintech is considerably broader than many others. We categorize vertical SaaS solutions as falling under the fintech umbrella. Companies like Toast and Shopify, where over 80% of revenue stems from financial services, are considered fintech entities by us.

We also view B2B marketplaces as integral to the fintech ecosystem.

The Rise of a Social Media Presence

Let’s shift gears to your social media strategy. You’ve amassed over 151,000 followers on X. How did you achieve this level of recognition?

I wouldn’t necessarily call myself a “star,” but I genuinely enjoy the platform. I initially joined Twitter some time ago, but my activity remained limited until the onset of the pandemic.

During the early months of the pandemic, I became heavily involved in Clubhouse, driven by boredom. I quickly gained a substantial following there – around 3.3 million users. However, that platform’s relevance has diminished. Twitter served as the primary means of communication with the Clubhouse community, naturally leading to increased activity and follower growth on X. I simply began writing and discovered a genuine enjoyment in sharing ideas and receiving feedback.

Viral Posts and Memorable Moments

What posts have resonated most widely with your audience over the years?

My wife shared a photo of herself at the Folsom Street Fair with a humorous expression, conveying a sense of bewilderment. This post garnered 250,000 likes.

From my own account, a post emerged during a period when I was evaluating numerous web3 proposals addressing non-existent problems. I encountered a video of someone who had bisected a bicycle wheel, yet still managed to ride the bike. I questioned the rationale behind this modification, captioning the video with a comment about web3 founders solving problems that don’t exist, and it quickly went viral.

Unexpected Appearances

Beyond investing, you’ve gained attention for unique experiences, such as your 2023 Taco Bell Metaverse wedding and your appearance in a Justin Bieber video in 2021. How did these events unfold?

My engagement in 2022 was documented on Twitter. Taco Bell launched a contest seeking a couple to marry in the metaverse. Many people recognized my engagement and my fondness for Taco Bell, suggesting I apply. We were ultimately selected.

Regarding the video, I participated in a dating show called the Zoom Bachelorette during the pandemic. While I didn’t win, I received the audience’s vote, which included Scooter Braun, Justin Bieber’s manager, among the viewers. We connected on Clubhouse, and he invited me to appear in the video.

The Impact of Social Media on Investment

While not all your posts focus on investing or fintech, do you believe your social media presence has influenced your work? Has it helped you connect with founders or secure deals?

I’m not actively pursuing those outcomes, but I believe it has been beneficial. I recall reaching out to a founder I was particularly enthusiastic about, knowing that other investors were also in contact.

He responded immediately, referencing a viral tweet of mine that was a playful response to a shirtless photo posted by Chamath Palihapitiya. He mentioned that we appeared to share a similar workout routine. This connection led to a positive conversation and ultimately, a successful investment.

The Current State of Fintech Investment

Turning to Better Tomorrow Ventures – how many funds have you raised to date? And there’s a growing sentiment that fintech is experiencing a resurgence. Do you share that view? What areas are you particularly optimistic about?

We are currently deploying capital from our second fund and preparing to launch our third. I agree that the fintech market is regaining momentum, and we anticipate increased exit activity in the near future.

I remain excited about the “everything is fintech” concept, which continues to hold true. Vertical SaaS and B2B marketplaces are increasingly incorporating fintech elements, presenting significant opportunities. I’m also particularly interested in the accounting space, where we’ve identified a substantial shortage of qualified professionals.

Bench’s Shutdown and the Accounting Space

That’s interesting, considering the recent shutdown of Bench, an accounting startup, followed by its acquisition by Employer.com. While there’s debate surrounding Bench’s challenges, does this event affect your overall outlook on the accounting sector?

I view Bench more as a traditional accounting firm than a venture-backed technology company. Their model relied heavily on human accountants, which presents scalability challenges for a venture-scale business. I understand they faced difficulties and ultimately had to make adjustments.

DeepSeek and the AI Landscape

The recent emergence of DeepSeek has generated considerable buzz. OpenAI appeared concerned. What’s your assessment – is DeepSeek a genuine threat, or is it primarily hype?

Several factors contribute to the discussion surrounding DeepSeek. It originates from China, it’s open source, and it’s reportedly achieved at a lower cost.

We’ve long believed that the cost of inference and modeling would decrease. DeepSeek’s launch has accelerated this trend, leading to a price war at the foundational model level, which is highly beneficial for companies building on AI.

The Broader AI Hype

What are your thoughts on the broader hype surrounding AI?

Many companies pitch us as “AI companies,” but upon closer examination, their AI integration is minimal or non-existent. I believe relatively few companies are genuinely AI-driven. However, numerous companies are realizing substantial value from AI without necessarily identifying as “AI companies.” We invest across this spectrum.

There’s a perception that you need to be an “AI company” to attract attention, but I don’t believe that’s accurate. Honesty and transparency about your capabilities are paramount.

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