Fintech may not be the buzzword it was during the zero-interest boom, but for Better Tomorrow Ventures (BTV), the opportunity is far from over. The San Francisco–based VC firm just closed its third fund at $140 million, reaffirming its confidence that financial services remain one of the largest industries still waiting to be fully digitised.
Why Better Tomorrow Ventures Still Bets on Fintech
“Finance makes up nearly 20% of global GDP, yet a huge chunk of it still runs on outdated, manual systems,” says Sheel Mohnot, BTV’s co-founder and general partner. Alongside co-founder Jake Gibson (who also co-founded NerdWallet), Mohnot believes the next wave of fintech will be powered by more intelligent automation and AI.
This conviction is what keeps BTV bullish at a time when many investors are cautious. Instead of chasing inflated valuations like in 2021, the firm sees a more rational and fertile environment for backing fintech startups that can actually solve deep-seated structural problems.
A $140M Fund in a Tighter Market
BTV’s third fund is slightly smaller than its $150 million second fund raised in 2022, but the strategy is intentional. Mohnot explains that today’s calmer market means the firm doesn’t need as much capital to continue backing its best startups. Unlike in the frenzy years, companies aren’t instantly raising overhyped rounds, leaving BTV room to invest more thoughtfully.
The fund will target 30–35 early-stage companies, writing checks ranging from $500,000 to $3.5 million. That focus positions BTV right where fintech innovation typically starts: small teams tackling overlooked pain points.
Where BTV Sees the Next Big Wins
One area the firm is especially excited about? Accounting.
“There’s a global shortage of accountants, and firms are literally turning clients away. AI can fix that,” says Mohnot.
BTV has already backed three accounting startups pushing automation to the forefront:
- Basis – an AI-first platform that just raised a $34M Series A led by Khosla Ventures.
- Layer – an embedded accounting tool for SMBs.
- InScope – a company automating financial statement preparation.
But accounting is only one slice of the pie. BTV sees AI transforming everything from compliance and fraud detection to underwriting and customer support, all areas where cost reduction and efficiency are critical.
Betting on the Broader Fintech Landscape
Beyond accounting, BTV has an impressive track record of fintech investments. Its portfolio includes:
- Coast – payments for truck fleets.
- Relay – a small-business banking platform.
- Unit – a banking-as-a-service giant last valued at $1.2B.
With several anticipated fintech IPOs on the horizon, Chime, Klarna, Navan, and Wealthfront BTV believe the category could spark renewed excitement across the ecosystem, drawing more late-stage investors back into the mix.
The Bigger Picture
Better Tomorrow Ventures isn’t just writing checks; it’s betting on a long-term transformation. The firm’s thesis is clear: fintech isnot yet done evolving, and AI is poised to accelerate its progress. With its latest $140M fund, BTV is positioning itself to fuel that change, one early-stage company at a time.
