Better Tomorrow Ventures Raises $140M for Fintech-Focused Fund, Eyes Next Wave of Innovation

Better Tomorrow Ventures Closes $140M Fund, Remains Bullish on Fintech Better Tomorrow Ventures (BTV), a leading fintech-focused venture capital firm, has closed its third fund with $140 million in commitments. The new fund is nearly as large as the second fund, which was announced in early 2022 and raised $150 million. "We actually planned to make the fund smaller this time," said Sheel Mohnot, co-founder and general partner of BTV. "In 2021, things went super overboard. Every company we invested in immediately raised a follow-on round at a crazy price, and that was probably bad." Mohnot attributed the more tempered fundraising environment to a decrease in enthusiasm for fintech investments. However, he remains optimistic about the sector's potential. "The world of finance is huge," Mohnot told TechCrunch. "About 20% of global GDP is financial services, and it's still not digital enough. Many financial transactions are still handled manually, and we aim to help change that." BTV's limited partners seem to agree with Mohnot's assessment, as they have committed a significant amount of capital to the new fund. The firm was founded by Mohnot, a former general partner at 500 Startups, and Jake Gibson, co-founder of NerdWallet. BTV focuses on investing in fintech startups that are working to digitize financial services and improve access to financial products for underserved communities. Mohnot noted that the massive digitization opportunity in finance is still ahead of us, and BTV plans to continue participating in this trend with its new fund. "We're excited about the potential for fintech to transform the way people interact with financial services," Mohnot said. "We believe that our portfolio companies have the potential to make a significant impact on the industry." With the closing of its third fund, BTV is well-positioned to continue investing in innovative fintech startups and driving growth in the sector. Background: Better Tomorrow Ventures was founded in 2018 with the goal of investing in fintech startups that are working to digitize financial services. The firm has a strong track record of success, with portfolio companies including several high-profile fintech startups. Implications: The closing of BTV's third fund is significant for the fintech industry, as it demonstrates continued investor interest in the sector. With $140 million in commitments, BTV will be able to continue investing in innovative fintech startups and driving growth in the industry. Real-world applications: BTV's focus on digitizing financial services has the potential to improve access to financial products for underserved communities and increase efficiency in the financial sector. The firm's portfolio companies are working on a range of initiatives, from mobile payments to digital lending platforms. Next developments: BTV plans to continue investing in fintech startups with its new fund, focusing on companies that have the potential to make a significant impact on the industry. The firm will be looking for opportunities to invest in innovative technologies and business models that can help transform the way people interact with financial services. *Reporting by Techcrunch.*