Better Tomorrow Ventures closes $140M, remains bullish on fintech

Better Tomorrow Ventures (BTV) has successfully raised $140 million for its second fund, reinforcing its commitment to the fintech sector amid claims that the industry is losing its allure. Co-founder and general partner Sheel Mohnot emphasizes the vast potential within financial services, which constitutes approximately 20% of global GDP and remains significantly under-digitized. Mohnot, along with BTV co-founder Jake Gibson, aims to capitalize on the ongoing shift towards digital finance. "The massive digitization opportunity is still ahead of us," he noted in a recent interview. The firm, which had initially considered a smaller fund size, now sees value in participating in the evolving fintech landscape without needing as much capital, particularly as market enthusiasm cools compared to the overly exuberant investment climate of 2021. BTV’s strategy includes a focus on the burgeoning accounting sector, which is facing a significant shortage of professionals. Mohnot highlights the potential for artificial intelligence to revolutionize this space, stating, "Accounting firms are all turning away business, and it’s a perfect application for AI." The firm has already invested in three promising accounting startups, including Basis, which recently secured $34 million in Series A funding, and others aimed at streamlining financial processes for small and medium-sized enterprises. In addition to accounting, Mohnot is optimistic about AI's broader applications within fintech, noting that it can enhance various labor-intensive financial services tasks, from underwriting to customer support, all while reducing costs. Other key players in the BTV portfolio include Coast, a payment solution for fleet drivers, and Relay, an online banking platform for small businesses. With plans to invest in 30 to 35 companies for its third fund, BTV continues to strategically position itself for future opportunities in the financial technology space.