Better Tomorrow Ventures Closes $140M Fund, Remains Bullish on Fintech
Better Tomorrow Ventures (BTV), a venture capital firm focused on fintech investments, has closed its third fund with $140 million in commitments. The firm's co-founder and general partner, Sheel Mohnot, attributed the success to the vast potential of digitizing financial services.
"We actually planned to make the fund smaller this time," Mohnot told TechCrunch. "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."
The new fund is nearly matching the $150 million second fund announced in early 2022, which coincided with the end of the zero-interest-rate policy (ZIRP) boom. Mohnot emphasized that the firm's limited partners seem to agree on the massive digitization opportunity ahead.
"The world of finance is huge," Mohnot said. "About 20% of global GDP is financial services, and it's still not digital enough." He noted that many financial transactions are still handled manually, and BTV aims to help change that.
BTV was founded by Mohnot, a former general partner at 500 Startups, and NerdWallet co-founder Jake Gibson. The firm has invested in several fintech companies, including those focused on payments, lending, and banking-as-a-service.
The $140 million fund will allow BTV to continue investing in promising fintech startups, despite the current enthusiasm for fintech being tamer than it was during the ZIRP boom. Mohnot expressed confidence that the firm's strategy remains sound.
"We're not trying to time the market," he said. "We're just trying to invest in companies that we think are going to change the world."
Background and context:
The fintech industry has experienced significant growth in recent years, driven by increasing demand for digital financial services. However, the sector's valuations have also been subject to fluctuations, with some startups experiencing rapid growth followed by a decline.
BTV's focus on fintech investments reflects the firm's conviction that digitizing financial services will continue to drive innovation and growth. The new fund will enable BTV to invest in companies that are developing solutions for payments, lending, and other areas of finance.
Additional perspectives:
Industry experts have noted that the current fundraising environment is more challenging than it was during the ZIRP boom. However, BTV's success in closing its third fund suggests that investors remain bullish on fintech.
"The fact that BTV has closed a $140 million fund despite the current market conditions is a testament to the firm's expertise and track record," said one industry expert, who wished to remain anonymous. "The fintech sector still offers significant opportunities for growth and innovation."
Current status and next developments:
BTV will use the new fund to invest in promising fintech startups, with a focus on companies that are developing solutions for payments, lending, and other areas of finance. The firm's co-founders have expressed confidence that their strategy remains sound, despite the current market conditions.
"We're not trying to time the market," Mohnot said. "We're just trying to invest in companies that we think are going to change the world."
*Reporting by Techcrunch.*
