In 2022, fintech startups globally attracted a staggering $57.6 billion in investments. But why? Fintech, at its core, is the marriage of finance with disruptive digital technologies.
Think mobile banking, online lending, or even the complex realm of blockchain. This rapidly expanding sector is on track to amass an estimated annual revenue of $1.5 trillion by 2030.
Intrigued yet? Let's dive deeper. Who are the titans fueling this growth, the venture capitalists eyeing the next fintech unicorns?
Here we will explore the biggest players shaping tomorrow's financial landscape.
15 Best VC Firms Investing in Fintech
Diving into the fintech world, certain VC firms stand tall, leading the charge. Here is your guide to the top 15 names fueling fintech's meteoric rise:
1. First Round
Stepping into the venture capital scene in 2004, First Round has since become a key player, especially in fintech.
Based in the tech-hub of San Francisco, with branches in New York and Philadelphia, their outreach is global. They've famously backed giants like Uber and Square, solidifying their reputation in the fintech space.
Typically, they invest a significant sum, around $2M, with the agility to adapt to both smaller and heftier commitments.
Having undertaken 854 investments with 189 successful exits, their portfolio boasts names like Ascend and SmartBiz, both fintech innovators. Their financial prowess is evident with a whopping $738 million raised in funds.
Best Suited Startups:
- Early Birds: Startups seeking Pre-Seed, Seed, or Series A funding, primed to disrupt the fintech sector.
- Innovative Insurtech: Ventures like Ascend, changing the insurance payments landscape, would catch First Round's eye.
- SME Facilitators: Firms such as SmartBiz, aiming to streamline financial processes for small businesses, resonate with their portfolio.
2. Foundation Capital
Anchored in Palo Alto, Foundation Capital has etched its name as a prominent early-stage investor since 1995.
This Palo Alto giant, which has undertaken 674 investments and celebrated 158 exits, is not just another venture capitalist.
With a robust $3.9 billion fund, they've cast their weight behind game-changers like Netflix and Uber. Their commitment to fintech is unparalleled—investing long before "fintech" became a buzzword.
They stand firm with their strategy, mirroring Warren Buffet's wisdom, and their fintech portfolio showcases this, featuring pioneers like Blockstack Labs and Cover Wallet. Foundation Capital isn't just investing; they're building legacies.
Best Suited Startups:
- Technological Pioneers: Those leveraging software, data, and AI to revolutionize fintech spaces.
- Blockchain Visionaries: Startups like Blockstack Labs, harnessing blockchain for innovative financial solutions.
- Insurtech Innovators: Ventures akin to Cover Wallet, melding analytics and tech to reshape small enterprise insurance.
3. NFX
Born from founders with over $10 billion in exits, NFX is not your ordinary seed investor. Specializing in the power of network effects, they stand for transforming bold visions into enduring legacies.
With an expansive reach spanning the U.S., Israel, Latin America, and Europe, NFX has made its mark with 469 investments and 99 triumphant exits.
Their fintech triumphs? Candex, revolutionizing vendor payments; HoneyBook, reshaping creative SMB services; and SESO, a dynamic agricultural labor marketplace.
At NFX, it's not just about funding but sculpting the next FinTech titan.
Best Suited Startups:
- Network Powerhouses: Fintech startups leveraging robust network effects for exponential growth and defensibility.
- Global Reach Ventures: Those targeting multiple markets, especially in NFX's active regions like the U.S., Israel, and Latin America.
- Early Bloomers: Pre-seed and seed-stage fintech startups hungry for both capital and world-class mentorship.
4. Keiretsu Capital
At the nexus of vision and strategy lies Keiretsu Capital, proudly crowned as Pitchbook's "Most Active VC in the US" for 2021.
Hailing from Seattle and deeply rooted in the formidable Keiretsu Forum - the world's premier angel network - they're not just investors; they're global game-changers.
With an impressive portfolio spanning over 300 companies and assets north of $40M, their forte extends to fintech, alongside health-tech, cleantech, and more.
Their mission? Fostering a worldwide community of discerning investors, committed to propelling startups to their zenith.
Best Suited Startups:
- Innovative Pioneers: Fintech startups reshaping finance with fresh, out-of-the-box solutions and unparalleled vision.
- Global Ambitions: Ventures aiming for international footprints, given Keiretsu's vast global investor network.
- Early Bloomers: Seed-stage fintech entities, ready to transition from a promising idea to a market-leading innovation.
5. CFV Ventures
Nestled in Charlotte, NC, CFV Ventures, established in 2017, has swiftly become a beacon for fintech startups. Prioritizing innovation, this firm isn't just about funding; it's about partnering with visionaries.
Their commitment is evident, channeling 60% of their investments towards startups aligned with the Queen City Fintech Accelerator program.
With a keen eye for potential, they've backed pioneers like Lenme and InsureLife, reshaping the fintech landscape.
Their investment sweet spot? A robust $100K to $250K, targeting seed to Series A stages.
Best Suited Startups:
- Innovative Disruptors: Fintech ventures with unique, transformative solutions ready for early-stage seeding.
- Queen City Affiliates: Startups connected with the Queen City Fintech Accelerator program, showcasing potential synergy.
- US-based Gems: Fintech initiatives primarily anchored within the US, looking for a strategic growth push.
6. 500 Global
Looking to make waves in the fintech sector? Enter 500 Global. Founded in 2010, this heavyweight has a whopping $2.4B under its belt, diligently invested in trailblazing tech companies worldwide.
How vast is their reach? With a portfolio boasting over 2,800 diverse startups from more than 80 countries, it's enormous!
Their deep dives into fintech are evident with marquee investments in disruptors like Clip - Mexico's fintech unicorn, and Chipper, Africa's rising payment star.
With a presence in 25 nations, their hands-on team, seasoned in tech, ensures that potential turns into performance. Want to be the next fintech sensation? 500 Global might just be your golden ticket.
Best Suited Startups:
- Emerging Payment Processors: Startups like Clip and Chipper are 500 Global's jam. Innovating in payment solutions? They're interested.
- Crypto and Blockchain Pioneers: Venturing into the decentralized finance realm? Their keen eye is on this disruptive space.
- Early Bloomers: If you're in the seed or early stage of your fintech journey, 500 Global is eager to fuel your ascent.
7. FJ Labs
Meet FJ Labs, New York's gem in the VC world. Not just any investor, they're marketplace maestros, with a whopping portfolio featuring 900+ companies and 30 unicorns!
Founded in 2015, their forte is fintech: from Klarna's "buy now, pay later" magic to Revolut's banking brilliance. Fast decisions? Absolutely! Two calls across two weeks and you'll know.
Globally minded but with an eye on the U.S., FJ Labs doesn't just invest; they empower. Their driving force? Enhancing the human condition through innovation.
With $175M raised and heavyweights like Betterment under their belt, they're on a mission, and fintech is their playground.
Best Suited Startups:
- Neobank Novelties: Following the footsteps of Betterment and Revolut, FJ Labs loves the innovation of digital-first banking.
- Marketplace Mavens: If your fintech meshes with marketplace models, they’ve backed giants like Alibaba and Coupang.
- "Buy Now, Pay Later" Innovators: Emulating Klarna's success? FJ Labs has a keen interest in this growing fintech segment.
8. Coinbase Ventures
From a radical 2012 idea to a crypto titan, Coinbase Ventures breathes life into fintech's future. Built on a vision of global economic freedom, they're not just any VC.
They’ve powered crypto journeys for countless enthusiasts across 100+ countries, boasting a stellar $128B assets on-platform.
With investments dotting the entire cryptoeconomy landscape - from DeFi, and NFTs to metaverse tech, their prowess goes beyond mere funding.
Anchored in strong compliance, and with a massive $92B quarterly traded volume, this venture arm is at the forefront of the fintech evolution.
Got a game-changing fintech idea? Coinbase Ventures might just be your ticket to the crypto big leagues.
Best Suited Startups:
- Cryptobank Crusaders: Innovating banking in the crypto space? They've backed pioneers like Custodia Bank and Hashdex.
- Cross-border Payment Pioneers: With Airtm in their portfolio, they value solutions that globalize fintech.
- Crypto Compliance Champions: Startups with a rigorous compliance foundation align perfectly with their strong emphasis on regulatory adherence.
9. Bessemer Venture Partners
Born from steel innovations and now sculpting fintech's future, Bessemer Venture Partners boasts an illustrious legacy.
With 130 IPOs in five decades, this San Francisco cornerstone manages an impressive $20 billion in assets.
Their global footprint spans the US, India, Israel, and the UK. Their eye for fintech prodigies is evident, having backed trailblazers like Zopa, nCino, and Betterment.
With over a century in the game, their commitment isn't just about numbers; it's about nurturing enduring businesses and celebrating diversity in every investment.
With Bessemer Venture Partners, fintech startups aren't just funded; they're forged into market leaders.
Best Suited Startups:
- Emerging FinTech Disruptors: Pioneers like Spruce and Viva Republica underscore Bessemer's knack for identifying breakout fintech platforms.
- Deep Tech in Finance: With investments in Quantopian and ACTIV Financial, they're eager for next-gen fintech solutions harnessing deep tech.
- Innovative Banking Platforms: Firms offering revolutionary banking or financing solutions, echoing their support for Home First Finance and Mambu.
10. Intel Capital
Emerging from the silicon roots of its parent company, Intel Capital is not just a financier but a catalyst for tech-driven startups.
Proudly pouring over $12.5 billion into 1,550 global innovators, this venture dynamo harnesses Intel's unmatched technical prowess to back future frontrunners.
Distinctly positioning itself at the crossroads of fintech, they delve deep into cloud-native infrastructure, mobile applications, and data-driven platforms.
With a track record boasting 200 public listings and 325 mergers or acquisitions, Intel Capital isn’t merely investing; it's crafting the next-gen tech tapestry.
For fintechs aspiring to redefine tomorrow, Intel Capital might just be the launchpad they've been seeking.
Best Suited Startups:
- Cloud-Native FinTechs: Those innovating in cloud-native finance structures, leveraging Intel's prowess in cloud tech.
- AI-Driven Finance Platforms: As Intel leans into AI, fintech platforms harnessing AI for disruptive solutions are prime candidates.
- Mobile Payment Innovators: With a keen eye on mobile tech, startups transforming mobile payment ecosystems resonate with Intel Capital's vision.
11. Lightspeed Venture Partners
Lightspeed Venture Partners, a global beacon in venture capital, isn't just another VC; they immerse, evolve, and walk the innovation path with startups.
With 20 years of wisdom and deep-rooted conviction, Lightspeed has consistently transformed bold ideas into global phenomena. They command a staggering $18B in assets, having sculpted over 500 trailblazing companies.
Their fintech footprint is unmistakable; from Carta's private market dominance to Webull's tech-finance fusion, and Alloy's identity solutions.
Headquartered in California but with eyes on the future, they are the doers' ally, ensuring visions aren't just dreamt but are masterfully built.
Best Suited Startups:
- Global Fintech Dreamers: Founders anywhere with groundbreaking fintech ideas; geography isn't a barrier, and vision is the currency.
- Stage-Agnostic Ventures: From early seedlings to mature Series F firms, if the idea resonates, Lightspeed is in.
- Disruptive Financial Models: Ventures blending fintech with sectors like SaaS, Blockchain, or Big Data, aligning with Lightspeed's diverse interest palette.
12. Global Founders Capital
From the heart of Berlin, Global Founders Capital (GFC) stands out as a beacon for budding fintech innovators worldwide.
A champion of early-stage ventures, GFC's commitment extends from pre-seed whispers to the thundering crescendo of IPOs.
With an impressive AUM of $1.2B and a robust investment record, their discerning eye has captured the brilliance of fintech giants like Revolut and SumUp. This stage-agnostic firm doesn't just invest; it empowers.
Drawing from a rich lineage of experts, GFC's platform is designed to bolster the aspirations of gifted entrepreneurs, molding category-defining legacies in the fintech realm.
Best Suited Startups:
- Nascent Visionaries: Fintech startups at the seed or pre-seed phase, ready to disrupt and define categories.
- Geographically Unbound: Global founders are keen on making a mark, regardless of where they're rooted.
- Seeking Holistic Growth: Entrepreneurs who crave not just funds but an operational backbone for scaling universally.
13. Draper Associates
Rooted in the legacy of Silicon Valley, Draper Associates boasts a pioneering spirit that's spanned generations.
Incepted in 1985 by Tim Draper, this early-stage venture maverick has championed fintech prodigies, propelling the likes of Robinhood and Coinbase.
With a profound heritage tracing back to the first Silicon Valley venture capitalist, William Draper, the firm today casts its net wide, unearthing gems globally.
Over 400 investments, 123 monumental exits, and a staggering $230M in funds raised tell a tale of audacity and vision.
Draper doesn't just bet on the game-changers; they stand by them, weathering every storm, embodying true partnership.
Best Suited Startups:
- Disruptive Pioneers: Fintech startups ready to reshape the financial landscape with groundbreaking innovations.
- Global Thinkers: Ventures that transcend geographical boundaries, with a universal appeal and solutions for a worldwide audience.
- Long-Haul Players: Entrepreneurs committed for the long run, eager to partner with a VC that supports through challenges and triumphs.
14. Aldrich Capital Partners
Hailing from Bethesda, Maryland, Aldrich Capital Partners (ACP) isn't just about funding; it's about forging fervent alliances with budding fintech stars.
With an investment sweet spot ranging from $10M to $50M, they've been the silent force behind magnates like Infusionsoft and Lavu.
But ACP's magic lies beyond just capital. Founded by erstwhile entrepreneurs, their DNA is wired for challenges unique to startups.
They entwine their vast industry knowledge, network, and hands-on operational support to transform fintech potentials into market dominators.
Being in the game since 1999, ACP’s mastery is evident—they’ve maneuvered over $1B in tech investments. They don't just invest, they partner.
Best Suited Startups:
- Revenue Raisers: Fintech startups with a revenue trajectory surpassing $10MM and poised for explosive growth.
- Solution Innovators: Ventures introducing proprietary fintech solutions or software, standing distinct in crowded markets.
- Ambitious Leaders: Teams hungry for leveraging ACP's reservoir of resources, aiming for market leadership.
15. Canaan
From the tech-savvy streets of San Francisco to the bustling corridors of New York, Canaan has etched its mark.
With a rich tapestry of 33 years, they've funneled a staggering $6B across 12 funds, igniting 737 investments and witnessing 148 triumphant exits. It's not just about money; it's about vision.
Embracing disruptors in fintech, they've championed giants like Lending Club and Cardlytics. While many chase success, Canaan celebrates transformative ideas, regardless of their maturity.
Their playbook doesn't bank on stereotypes, and their ethos resonates with innovation and audacity. Canaan isn't just a VC; it's a visionary companion.
Best Suited Startups:
- Fintech Trailblazers: Startups introducing fresh paradigms in fintech, aiming to redefine industry norms.
- Early-Stage Enthusiasts: Fintech endeavors seeking seed or Series A funding, ready to scale with the right capital infusion.
- Value Visionaries: Teams focusing on long-term transformative impacts, aligning with Canaan's belief in breaking molds.
Conclusion
In the pulsing heart of our tech-driven world, fintech stands tall, revolutionizing how we handle money, conduct business, and even perceive value. The significance of venture capital firms investing in fintech cannot be overstated.
It's like fueling the engine of a massive spaceship heading to uncharted territories. Every startup they back, every vision they nurture, holds the potential to shape our financial future.
So, whether you're an investor, an entrepreneur, or just a keen observer, know this: fintech isn't just a trend. It's the future. And those investing in it today are essentially crafting tomorrow. Let's embrace this exciting journey ahead!
