Better Tomorrow Ventures has closed a $140 million fund for fintech investments. The company is betting on AI in accounting, compliance and financial services.
Better Tomorrow Ventures Raises $140 Million for Third Fintech Fund
Better Tomorrow Ventures (BTV) co-founder Shil Mohnot emphasizes that the demand for fintech has not disappeared. “Financial services are 20% of global GDP, and they are still not sufficiently digitized,” he explained.
New $140 Million Fund
Better Tomorrow Ventures Raises $140 Million for its third fund, almost repeating the result of the second ($150 million in 2022). According to Mohnot, this time the team even planned to raise less, as the market has become more restrained after overheating in 2021.
The company also has $75 million in reserve from the 2022 opportunity fund, which could come in handy amid the expected IPOs in fintech — including Chime, Klarna, Navan, and Wealthfront.
Betting on AI in accounting
Special attention is paid to the automation of accounting processes. Due to the shortage of specialists, BTV sees great potential for artificial intelligence in this area. The fund has already invested in three startups:
- Basis — a platform that recently raised $34 million from Khosla Ventures.
- Layer — an embedded solution for small and medium-sized businesses.
- InScope — a service for automating the preparation of audited financial reporting.
AI as a driver of fintech
Mokhnot is convinced that AI can reduce costs in labor-intensive processes in the financial sector — from underwriting to fraud detection and support.
Portfolio and plans
BTV’s portfolio already includes Coast (fleet payments), Unit (banking-as-a-service, valued at $1.2 billion), Relay (online banking for SMBs). With the new fund, BTV plans to invest in 30-35 companies, with checks from $500k to $3.5m.
Related: Wall Street Ends Higher, Posts Monthly and Quarterly Gains Despite Looming US Government Shutdown
