Fintech

​10 Actively Investing VC Firms for Fintech Entrepreneurs

As a fintech entrepreneur, you are most likely aware of the investment boom in the fintech industry. Global investment in fintech companies hit $19.1 billion in 2015, with $13.8 billion invested into VC-backed fintech companies alone. This was a whopping 106% jump compared to 2014!

Continuing the upward trend, worldwide investment in fintech ventures touched $5.3 billion within the first quarter of 2016 itself. If you are seeking investments for your fintech venture, here are 10 VC firms for startups like yours:

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1. 500 Startups

Founded by super angel investor Dave McClure, 500 Startups is certainly among the best-known names in the fintech industry. And why not? Here are just some of the many fintech companies that 500 Startups has invested in: CoinPip, PayClip, Coinding, RoverLendsquare, BTCjam, Lenda, PayByGroup, Coinalytics, Monetsu, GogoCoin, UniPay and StackCommerce. You could be next!

While 500 Startups funded a range of companies, it seems to particularly care for financial services, mobile, ecommerce, Bitcoin and consumer commerce. With funds in over 1000+ companies in 50+ nations, this VC firm has long surpassed the “500 startups” mark!

2. Andreessen Horowitz

Set up in 2009 by Marc Andreessen and Ben Horowitz, this VC firm has an impressive portfolio of investments in fintech startups. In 2015, Andreessen Horowitz led a $58 million Series C round for fintech star TransferWise. Other fintech startups that Andreessen Horowitz funded include Dwolla, Coinbase, Jumio, Earnest, 21 Inc and PayTango.

In August 2015, the addition of a fintech-dedicated general partner, Alex Rampell, reiterated the firm’s plans to further expand into finance technology. This is great news for fintech
startups like yours!

3. Sequoia

Sequoia has been supporting creators, innovators and disruptors for over 40 years. This VC firm continues to make fresh inroads into the financial technology sector with investments in PayPal, Square, Prosper, Citrus Pay and Stripe, to name a few.

Here’s what Pat Grady, partner at Sequoia, has to say about fintech startups:

In its long-standing history as an investor, Sequoia has financed some seriously legendary startups including Apple, Instagram, Airbnb and Kayak. With the backing of Sequoia, you could be the Apple of the fintech industry!

4. RRE Ventures

Led by James Robinson, RRE Ventures is another active investor in the fintech space. It has financed many fintech startups including online lenders like Avant and OnDeck Capital, financial management service NerdWallet, as well as a host of Bitcoin/blockchain firms such as BitPay.

Besides financial services, this VC firm is super keen on all services enabled by information technology, including mobile payments, mobile commerce, Internet of Things and robotics.

RRE boasts over 60 acquisitions and 17 IPOs since its inception in 1994. With an aim to broaden the scope of products or services driven by information technology, RRE Ventures is on the lookout for extraordinary innovators in this space. Are you ready to catch their attention?

5. SV Angel

This firm is lead by Ron Conway, who has been an active angel investor for the last 15 years. SV Angel has consistently financed a number of fintech companies including Credit Karma, LedgerX, Card Spring and Boku.

More recently, in January 2016, SV Angel helped the fintech startup, LendUp raise $150M in a funding round. S V is on the constant lookout for innovative fintech ventures to invest in. Could yours be next in line?

6. Ribbit Capital

As a fintech entrepreneur, don’t you agree?

In the last 5 years, Ribbit Capital has emerged as a premier investor in fintech and financial services linked to payments, lending, accounting, tax etc. Under the able leadership of Meyer Malka, Ribbit has made scores of investments in the fintech space.

This VC firm’s fintech investment portfolio includes a number of Bitcoinbased companies like Coinbase, Xapo and BTCjam. In addition, Ribbit has also funded lending platform Funding Circle, credit score monitor Credit Karma, Invoice2go and Borro among other financial technology startups.

7. Aquiline Capital Partners

At Aquiline Capital Partners, Jeffrey Greenburg and Vincenzo La Ruffa bring years of experience from insurance and financial technology industries respectively. Not surprisingly, this VC firm has a penchant for investing in fintech, insurance, banking and other financial services.

In 2009, Aquiline made its first fintech investment in HedgeServ Holdings, which has over $300 billion in assets under management currently. Recently, this VC firm funded fintech startups including Virtus Partners, which offers solutions for credit hedge funds and Fenergo, a software provider to banks and capital market firms.

Aquiline is very active in the fintech space, and is looking for equally active entrepreneurs.

8. Oak HC/FT (Health Care/ fintech)

This Connecticut-based VC firm makes venture and growth equity investments exclusively in fintech and Health Care. If your fintech startup drives innovation either in next-generation payments or data-driven solutions, Oak HC/FT is worth checking out! Oak HC/FT has already invested in a bunch of financial technology companies including Digital Currency Group, Fastpay, Feedzai, Insureon and Poynt.

In January 2016, Michael Heller, President and board member of FactorTrust, joined Oak HC/FT as venture partner. His considerable expertise in information services, lending and banking makes him the right candidate to help expand the firm’s fintech portfolio.

9. DFJ (Draper Fisher Jurvetson)

If you are an extraordinary fintech entrepreneur who is ready to change the world, DFJ might just be the right VC firm for your startup. DFJ is particularly interested in disruptive technology, as well as consumer and enterprise focused apps.

DFJ offers both seed and growth money to companies. DFJ Venture provides capital to outstanding entrepreneurs who are seeking up to $1M in the seed stage. DFJ Growth, on the other hand, offers growth capital to companies looking at raising over $10M.

DFJ has funded several fintech startups including Coinbase, Remitly, Coinplug, LendKey, Prosper, FundersClub and TrialPay. Don’t you wish you were next in line?

10. GV (Google Ventures)

Given the endless opportunities that fintech offers, it is no surprise that tech giants like Apple and Google are making inroads into the industry. Google Ventures, recently rebranded as GV, was set up as a venture capital fund in 2009. Since then, GV has made investments in a wide range of startups from fintech segments including payments, lending, banking APIs and security.

Notable fintech companies that have received investment from Google Ventures include OnDeck, Rally, Ripple, LedgerX, LendUp, Upstart, Plaid and CircleUp.
There are many other VC firms that love fintech startups! This blog highlights some of the most active investors in the fintech space. Which other VC firms do you think should be on this list?

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