Global investment in fintech startups is experiencing a resurgence. KPMG recently released its “Pulse of Fintech” report for the second half of 2024, revealing a rise in investment to $25.9 billion in the fourth quarter of 2024, up from $18 billion in the third quarter. Although this doesn’t match the fervor of previous years, particularly the dynamic days of 2021, there remains considerable interest from venture capitalists in the sector.
Several venture capital firms continue to be optimistic about fintech. Infinity Ventures, an early-stage venture firm founded by Jeremy Jonker, Jay Ganatra, and Mario Ruiz, specializes in investing in fintech startups worldwide. Established three years ago, the firm closed its first $158 million fund in October 2021 and subsequently announced a $184 million Fund II in October 2024, accumulating total assets over $350 million. The firm’s investment amounts vary by stage: $1-2 million for pre-seed, $2-4 million for seed, and $5-10 million for Series A. Notable investments include Rainforest, Pagos, and Mendel, with the most recent significant investment being in SimpleClosure, a platform for business closure. The firm focuses primarily on B2B fintech and commerce enablement.
Better Tomorrow Ventures, established in 2019 by NerdWallet co-founder Jake Gibson and Sheel Mohnot, leads funding rounds in pre-seed and seed-stage fintech initiatives globally, managing $225 million in assets. Their investment sizes range from $500,000 to $4 million, with notable investments including Unit, Relay, Coast, Mendel, and Charlie. The firm’s recent major investment was in Basis. Mohnot has emphasized the importance of creative outreach in pitching to Better Tomorrow Ventures.
The Fintech Fund, co-founded in 2022 by Nik Milanović of “This Week in Fintech,” invests at the pre-seed and seed stages. The firm recently closed its second $10 million fund. Its typical investment size ranges from $200,000 to $400,000, with significant investments in companies like Rainforest, Unit, Cascading AI, and Ansa. Their latest major investment is in WiseLayer. Milanović stresses the firm’s value beyond capital, offering consulting and referrals as additional resources for founders.
Atlanta-based TTV Capital focuses on early-stage fintech companies and has assets exceeding $750 million. The firm’s investment sizes range from $2 million to $8 million, with significant investments in Green Dot, Bill.com, and Greenlight. Recent major investments include Charlie and Payabli. Partner Lizzie Hartley has noted the importance of founders clearly articulating their solutions during pitches.
QED Investors, with over a decade’s experience, focuses exclusively on early-stage fintech investments and manages $4 billion in assets. In 2023, the firm raised $925 million for an early-stage fund and a growth-stage fund. Co-founder Nigel Morris expressed the firm’s intention to make about 40 investments from the early-stage fund. QED’s investments focus on areas like embedded finance and cross-border payments, with significant investments in Credit Karma, Creditas, Nubank, and SoFi. Their most recent large investments are in Kin Insurance, One Card, and Moniepoint. The firm’s portfolio spans the U.S., Latin America, Europe, Southeast Asia, Africa, and its first investment in Japan, with a growing interest in the Middle East.
