Best Known Fintech Venture Capital Firms & Funds in 2023

What is a Venture Capital (VC) Firm?

A Venture Capital (VC) firm is an investment company that provides funding and professional mentorship to small business establishments and fintech startups. It focuses on supporting promising new companies with the technical and financial resources that they need to succeed in the market.

How many venture capital firms are there in the world?

According to Golden.com, an online encyclopaedia and self-constructing knowledge base powered by AI and ML, there are over 14,300 venture capital firms in the world as of November 2022. The most active venture capital firms for startups are based in the Americas and Europe.

Venture capital firms invest in what sectors?

VCs invest in startups in different sectors. They include fintech, gaming, communication and messaging, e-commerce, marketing, marketplaces, robotics, 3D printing, data management and analytics, cloud/digital infrastructure, blockchain, health, human resources, insurtech, IT/hardware and software, security, travel, and the list goes on. This means that any good business concept stands a chance of finding a venture capital firm.

How Venture Capital Works: The Main Stages of Venture Capital Financing

Typically, a VC raises capital from its limited partners and invests it in innovative companies that are at various phases of development. As companies grow, the investors vary because their preferences also change. Likewise, the amount of funding that can be obtained from a venture capital firm varies. That is why it is often expressed as a range, for example, $100,000 to $1 million.

Many VCs are interested in investing in small businesses with long-term growth potential. The said startup can be in any sector and at different stages of growth and development. But there are other VCs with a mission to focus on certain startups, such as fintech. The latter are the venture capital firms that we are discussing in this article.

What are the stages of venture capital funding?

A new business can pass through several stages of venture capital funding. However, the most common stages and their respective usual activities are outlined below.

• Pre-seed stage: The business concept is being developed, and a pitch deck is being created; initial funds come from personal finance, family, friends, and micro venture capital firms (if there is a chance).
• Seed stage (or seed round): A prototype or product is being created with robust market research, and more (but incremental) first-round funding from angel investors and early VCs has begun to get the business running.
• Early stage: The startup is in the commercial development phase, a viable product has been created, and venture capital investment is now in a series of rounds, such as Series A, Series B, Series C, and so on.
• Late stage: The company is more mature now, generating revenue, funding continues in rounds that can go up to a Series J; it is going into partnerships, mergers, and acquisitions; and it is making an initial public offering (IPO).
• Bridge to Exit stages: The startup is transitioning into a viable, full-fledged business; it is making IPOs, and significant funding is coming from sales, venture capital firms, and public stock; investors and founders are selling their shares to new owners and ending their business relationships with the company; restructuring or bankruptcy may happen here or at an earlier stage.

What share of a startup do venture capital firms own?

Venture capital firms often acquire between 20% and 50% of the share of the new companies that they invest in. However, the percentage of ownership depends on the stage of the business, where half is usually owned by the VC at about the exit stage. The share also depends on the startup’s growth prospects, the amount of investment, and the level of cordial relationship between its founders and its investors. So, it can be below 20% in some instances.

Top 10 European Venture Capital Firms for Fintech Startups

Based on our research on the most active VCs in the European market, below are our top 10 picks for the best venture capital firms for fintech startups. We listed them in alphabetical order.

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1. Almi Invest

Overview: Amni Invest is a Swedish venture capital firm that was established in 2009. It has one national GreenTech venture capital company and eight others at regional levels. Only Swedish innovative startups below 7 years old are eligible to get funding from this VC. Also, they should be in the following sectors: technology (including fintech and industrial equipment), life science, and cleantech (with climate-smart ideas for CO2 reduction). 

Headquarters: Stockholm, Sweden.

VC funding stage: Early stage (Series A+).

First-investment value: €200,000 to €450,000 (or its SEK equivalent).

Startups funded: 700+ startups, including over 370 active companies in various industries. Examples of them are Airolit, Arctic Engineering, and Gradientech.

Interested? Go to Almi Invest

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2. Anthemis Group

Overview: Anthemis Group is a British venture capital firm founded in 2010 with the purpose of fostering change in how the financial system works. It invests in fintech startups that have a mission to promote access, equity, transparency, and resilience.

Headquarters: London, United Kingdom.

VC funding stage: Early stage, with provisions for pre-seed, seed, and Series A+ financing for fintech startups.

First-investment value: $100 million to $500 million (or its EUR equivalent).

Startups funded: 140+ startups. Notable fintech companies in the portfolio of Anthemis Group include:

Atom bank (a leading provider of savings accounts, business loans, and mortgages.)

Azimo (one of the best services for low-cost international money transfers.)

eToro (a global digital assets investment platform for social trading)

Tide (a provider of business bank accounts and digital bookkeeping tools)

Interested? Go to Anthemis Group

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3. Episode 1

Overview: Episode 1 is a London-based venture capital firm created in 2013. It invests in UK-based B2B fintech companies, especially software-focused solution providers that see the world in new and different ways.

Headquarters: London, United Kingdom.

VC funding stage: Seed to early stage (Series A+).

First-investment value: £500,000 to £2 million (or its EUR equivalent)

Startups funded: 60+ startups, which include Global App Testing, Auto paid, and Betfair.

Interested? Go to Episode 1

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4. Global Founders Capital

Overview: Global Founders Capital is a German venture capital firm that was established in 2013 to support founders and entrepreneurs in all parts of the world.

Headquarters: Berlin, Germany.

VC funding stage: All stages (from pre-seed or day zero to IPO) with more attention on early-stage global startups.

First-investment value: $500 million to $1 billion (or its EUR equivalent).

Startups funded: 50+ startups, including Slack, Canva, Delivery Hero, Dash, and Jumia. Notable fintech companies in the portfolio of Global Founders Capital include:

Revolut (a financial super app for everything that concerns money)

Interested? Go to Global Founders Capital

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5. High-Tech Gründerfonds 

Overview: High-Tech Gründerfonds (HTGF) is a German public-private venture capital firm that was created in 2005 with a special interest in seed-stage businesses. Ever since the VC has invested in hundreds of high-tech startups in Europe and other parts of the world. It welcomes domestic and foreign investors who would like to do business in Germany using innovative technology. 

HTGF invests in startups in the following sectors: digital technology, industrial technology, financial technology, chemicals, and life sciences.

Headquarters: Bonn, Germany

VC funding stage: Seed stage (with follow-up financing).

First-investment value: €1 million to €4 million.

Startups funded: 680+ companies. Examples of them include AirGateway, Coinlend, fos4x, HiperScan, and Flowtif.

Interested? Go to High-Tech Grunderfonds

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6. K Fund

Overview: Spanish startups that have a global outlook can go to K Fund for venture capital financing. It is a VC that was founded in 2016 to fund early-stage businesses with differentiated tech-based products in Southern Europe, especially Spain and Portugal.

Headquarters: Madrid, Spain.

VC funding stage: Early stage (Series A+).

First-investment value: €100,000 to €10 million.

Startups funded: 35+, including Frontity, Fuell, Abacum, Bdeo, and Shopery.

Interested? Go to K Fund

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7. Novo Holdings

Overview: In 1999, Novo Holdings was established in Denmark as a venture capital firm with a special focus on investing in high-growth life science companies. It also funds fintech startups with an interest in offering innovative equity and real asset investment solutions for sustainability.

Headquarters: Copenhagen, Denmark.

VC funding stage: Seed and early stages.

First-investment value: About DKK 4 million (or its EUR equivalent)

Startups funded: 110+ startups, including SimCorp, Verve Therapeutics, and Orexo.

Interested? Go to Novo Holdings

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8. Passion Capital

Overview: Passion Capital is a London-based venture capital firm that was established in 2011. It specialises in funding and supporting tech startups.

Headquarters: London, United Kingdom.

VC funding stage: Early stage (Series A+).

First-investment value: (Undisclosed).

Startups funded: 90+ startups, including Coinfloor, Mixlr, Xelix, and Adzuna. Notable fintech companies in the portfolio of Passion Capital include:

Monzo (one of the  best neobanks and money transfer services)

Interested? Go to Passion Capital

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9. Practica Capital

Overview: Practica Capital is a Lithuanian VC that backs Baltic entrepreneurs. It focuses on startups in Estonia, Latvia, and Lithuania. It was founded in 2011.

Headquarters: Vilnius, Lithuania.

VC funding stage: Early stage (Series A+).

First-investment value: €200,000 to €2 million.

Startups funded: 60+, including Pvcase, Ovoko, Eneba, CGTrader, ZitiCity, and Web Robots. Notable fintech companies in the portfolio of Practica Capital include:

TransferGo (one of the fastest cross-border payment solution providers)

Interested? Go to Practica Capital

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10. Seedcamp

Overview: Seedcamp is one of Europe’s biggest venture capital firms. It was founded by a group of 30 European investors in 2007. This VC supports all kinds of businesses in different parts of the world, promoting excellence in technological innovations.

Headquarters: London, United Kingdom.

VC funding stage: Seed stage (including pre-seed) and early stage (Series A+).

First-investment value: £300,000 to £500,000

Startups funded: 440+ startups, including Hopin, UiPath, Sorare, Rayon, Cyscale, Dala, Mava, Vanilla Steel, and Outverse. Notable fintech companies in the portfolio of Seedcamp include:

Wise (a leading multi-currency low-cost money transfer service provider)

Pleo (a provider of smart-spending solutions for business management)

Curve (offers an innovative app with payment cards and a wallet with rewards)

Monese (provides mobile money accounts with the best travel credit cards)

Holvi (offers digital banking services for small businesses and freelancers)

Interested? Go to Seedcamp

Top 10 American Venture Capital Firms for Fintech Startups

Based on our research, below are our top 10 picks for the best venture capital firms based in the United States of America. Like in our European selection above, they are listed alphabetically.

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1. Accion Venture Lab

Overview: Since its founding in 1961, Accion Venture Lab has been a global investor in fintech startups with innovative products for underserved people. It supports the growth and prosperity of low-income individuals and small business establishments that have long-term success potential worldwide.

Headquarters: Washington DC.

VC funding stage: Seed to early stage (Series A+).

First-investment value: $1 million to $3 million.

Startups funded: 60+, including 1st Valley Bank, Akiba Commercial Bank, and Civico.

Interested? Go to Accion Venture Lab.

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2. BDMI

Overview: BDMI is a venture capital firm that was created in 2006. It invests in innovative startups in four main areas: fintech, Web3 (such as DeFi, NFTs, and DAOs), enterprise SaaS, and next-generation media. BDMI invests in North American, European, and Israeli companies.

Headquarters: New York City.

VC funding stage: Seed to early stages (typically Series A and Series B).

First-investment value: $500,000 to $10 million.

Startups funded: 100+ companies, including Lemonada, FloSports, Omaze, and Italy Fund.

Interested? Go to BDMI

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3. Box Group

Overview: Box Group is an investment company that provides support for technology-based startups. This VC is interested in providing the earliest possible stage of funding for new products that have the potential to unlock specific markets.

Headquarters: New York City

VC funding stage: Pre-seed to early stage (Series A+).

First-investment value: $250,000 to $1 million

Startups funded: 400+ companies, including Block, Button, Fundera, Plaid, and Paytient.

Interested? Go to Box Group

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4. CFV Ventures

Overview: CFV Ventures is a VC that has been in operation since it was launched in 2017. It works with fintech startups affiliated with the Queen City Fintech Accelerator programme or primarily based in the United States of America.

Headquarters: Charlotte.

VC funding stage: Seed to early stage (Series A).

First-investment value: $100,000 to $250,000.

Startups funded: 80+ companies, including Finsophy, CAPWAY, Optimis, NewBanking, and SpendPal.

Interested? Go to CFV Ventures

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5. First Round Capital

Overview: First Round Capital is a venture capital firm. It was created in 2004 to help startups get their first money, first hires, first products, and first customers; hence, it is called “First Round.” Every new business in any industry is welcomed by this VC. It is also noteworthy for providing answers to several frequently asked questions on its website, giving you adequate information before you make your first contact with First Round.

Headquarters: San Francisco, California.

VC funding stage: Pre-seed to early stage (Series A; does not fund Series B or Series C)

First-investment value: $750,000 to $4 million.

Startups funded: 300+ companies, including Binti, Alt, Discourse, GOAT, Greg, and GroupMe. Notable fintech firms in the portfolio of First Round Capital include:

Intuit Mint (one of the best apps for personal finance and budgeting)

Square (one of the best providers of hardware and software payment solutions for merchants)

Interested? Go to First Round Capital

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6. Foundation Capital

Overview: Foundation Capital is one of the venture capital financing firms holding the leading records for innovation investment. It was founded in 1995. The company’s unmatched financing practices are designed for the funding of startups in the crypto, fintech, consumer, and enterprise sectors.

Headquarters: Palo Alto, Silicon Valley, California.

VC funding stage: Seed to early stage (Series A+)

First-investment value: Around $2 million.

Startups funded: 160+ firms, including Netflix, Chegg, OpenSea, DevZero, Agentero, Alto, Appurify, Arize, and Brave. Notable fintech companies in the portfolio of Foundation Capital include:

Binance.US (top site to trade and invest in over 130 cryptocurrencies in the US)

Current (a fintech firm that offers innovative mobile-only banking services)

Interested? Go to Foundation Capital

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7. Greycroft

Overview: Greycroft is a venture capital firm comprising over 250 diverse teams worldwide, intending to redefine how the internet economy operates. It was established in 2006 to invest in startups in the consumer, enterprise software, digital health, and fintech sectors.

Headquarters: New York City and Los Angeles.

VC funding stage: Seed to early stage (Series A+)

First-investment value: $ 1 to 10 millions.

Startups funded: 200+, including Atom Finance, Aventri, Bamboo, and Brave Care.  Notable fintech companies in the portfolio of Greycroft include:

Verse (a leading provider of mobile money and payment card solutions)

Interested? Go to Greycroft

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8. Highland Capital Partners

Overview: Highland Capital Partners has been operating as a venture capital firm since it was created in 1988. It is a global company that uses a team-oriented approach to support tech-based startups.

Headquarters: Boston, Massachusetts.

VC funding stage: Seed to early stage (Series A+)

First-investment value: $500,000 to $10 million.

Startups funded: 280+ companies, including LevelUp, Clearbanc, Gigamon, VistaPrint, and Turbonomic.

Interested? Go to Highland Capital Partners

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9. Menlo Ventures

Overview: Menlo Ventures is one of the oldest venture capital firms in America. It was founded in 1976 and has been helping founders build a better future in different industries. The company focuses more on startups in fintech, SaaS, life science, digital health, cybersecurity, utilitarian consumption, infrastructure/developer software, and AI/robotics.

Headquarters: Menlo Park, California.

VC funding stage: All stages (from Seed to Series A+)

First-investment value: Asdf (undisclosed?)

Startups funded: 400+, including Uber, DataXu, Netlify, Scality, and Orro. Notable fintech companies in the portfolio of Menlo Ventures include:

BitPay (one of the best trading platforms and apps for spending cryptocurrency)

Chime (a mobile app for switching banks and saving money automatically)

Interested? Go to SeedInvest

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10. Y Combinator

Overview: Y Combinator (YC) is one of the best venture capital firms in the United States. It was established in 2005 to finance startups in diverse industries.

YC hosts two sessions of three-month programmes for founders and startups annually: January through March and June through August.

Headquarters: California.

VC funding stage: Pre-seed to early stage (Series A+)

First-investment value: $125,000 to $25 million.

Startups funded: 3,500+ firms, including GitLab, Cruise, Dropbox, and Retool. Notable fintech companies in the portfolio of Y Combinator include:

Stripe (a leading provider of all-in-one infrastructure for digital payments)

Coinbase (one of the best crypto exchanges and digital wallets)

GoCardless (one of the best online payments solution providers)

Interested? Go to Y Combinator