Venture capital firms (VC) are like venture capital (VC) startups. Thousands of new startup companies ask VCs for help to develop their ideas. In this article, we reveal the most trusted VC investors who pour money into startups in the US, Europe/UK, and Canada.
But before we name the most trusted Venture Capital FinTech investors in these regions, let’s make sure you know what it's like working with a startup company first.
What are venture capital firms?
Venture capitalists are similar to real estate agents who help you rent or sell a property. They are asset funders, which means they provide cash to start-ups with growth potential in exchange for equity in the company.
Additionally, venture capitalists help companies by providing useful advice, connecting them with influential people in the industry, and helping them establish internal processes that will improve their chances of long-term success. As an entrepreneur in your business venture, you have pros and cons when dealing with VC funders too.
Advantages of venture capital funding
- Expert assistance
Venture capital funding gives startups not only financial support but also essential help in the form of supervision and consultative services.
- No need to repay
If a startup fails, its founders don’t have to repay venture capitalists who invested in it for this reason; however, VCs expect to be repaid if the startup uses any equity to get bank financing.
- Guidance at any stage of an investment
VC funders help startups at all fundraising rounds and are happy to invest large sums into ideas which they believe in thoroughly - when you find your business angel, be sure to work with them until you've realized all possible potential!
Disadvantages of venture capital funding
- A little possibility of getting financing:
Startups apply to venture capitalists every day, and the competition can be rough. Venture capitalists fund only outstanding ideas and startups that will be profitable and grow rapidly.
- Need to give up shares in the company
A startup has to give up a stake if it wants to get venture capital funding. Venture capitalists also invest in companies because they want a say in what happens to the business as well as its direction.
VC investors all have their stipulations when it comes to working with an aspiring entrepreneur or startup in order for them to be eligible for a potentially life-changing investment in their company.
Best American VC firms
Location: New York, New York.
The FinTech Collective was launched in 2012 by Gareth Jones. Since then, the firm has been funding 30+ different startups. FinTech Collective works with startup companies from all over the world at different stages of fundraising. Its goal is to raise awareness for technological advancement within the monetary sector and bring clarity into advanced trading methods.
FinTech Collective encourages interested entrepreneurs to apply for our innovation competitions.
FinTech Collective is on the lookout for companies that focus on any of the following traits:
- capital trading
- wealth and asset management
- banking, lending, and payments
- insurance, alternative lending
- blockchain technology
- security systems
The FinTech Collective has helped platform MoneyLion focus on capital trading and online lending while Nuts was selected for an incubating program that would enable the team to see their innovative idea become reality.
Location: San Francisco, California.
Babak Poushanchi and Bobby Yazdani founded Cota Capital in 2014. They deal with startups at all financing stages, from seed to C round. After launching Cota Capital in 2014, they quickly became prominent leaders in the Silicon Valley tech scene. Their unique approach to funding projects demonstrates their creative vision for the future of the VC world.
Cota Capital funds are on the lookout for companies that focus on any of the following traits:
- Cloud computing
- Big data
- International payments
Blockchain Capital is a venture capital firm that supports startups in the blockchain sphere. Blockchain Capital was founded by Bart Stephens and Bradford Stephens in 2013 and its headquarters are located in San Francisco, California. The company’s office is currently located on Market Street and it also has an office in Berlin, Germany. Within three years of their founding date, they had raised $7 million for startup projects and currently, work with over 80 of them.
Blockchain Capital only works with companies that are heavily focused on blockchain technology (BT), risk management (RM), cyber security (CS), business, corporate banking, and payments processing. Blockchain Capital has helped to fund Bison Trails, TRM Labs, Securitize, OpenSea.
Location: New York, New York.
Harlan Milkove, a young and energetic businessman, established Foundation Capital in 2016. It has thus far helped more than 50 startups in the financial sector. Its primary focus is on long-term prospects. The organization’s approach is to assist ambitious, start-up companies that are looking for their capital at the early stages of their development.
Foundation Capital invests in startups that focus on the following areas: alternative lending, payments, and fraud prevention. Foundation Capital was an early investor in companies like Nextview, Camber Creek, Lerer Hippeau.
Best European VC firms
Location: Vienna, Austria.
Speedinvest is an Austrian VC firm established in 2011. Speedinvest works with first-time technical startups at the early fundraising stages. The firm supports projects connected with the finance and technology spaces as well as all the amazing ways their branches can be applied to real world settings!
Speedinvest has a particular emphasis on startups that focus on:
- Data, infrastructure, and security
- Asset management and capital trading
- Personal finance
- Alternative lending
When Speedinvest considers how much money they are going to invest in a startup, they look at several factors including the size of the market for the company's product, what type of value it will bring to its customers, and what other resources are available. Speedinvest has funded startups including Actiondesk, Aircloak, and Cashpresso.
Location: Stockholm, Sweden.
In 2014, Johan Lundberg established NFT Ventures with a focus on the FinTech industry. Based in Stockholm, Sweden and has already funded more than 46 startups in the Nordic region and the UK. It supports startups at the seed stage of development so they can really grow their ideas into something special! \
Some of NFT Ventures' well known investments include Betalo, Toborrow, Mondido Payments & Nowo.
NFT Ventures funds startups who's focus is on:
- Personal finances
Location: London, England.
The Anthemis Group was founded in 2010 by Sean Park and it has become one of the most popular VC investment companies in Europe today.
The company specializes in direct and secondary direct fundings in startups intended towards the financial sphere. They pour money into both early-stage and late-stage ventures.
Anthemis Group funds startups that concentrate on:
- Retail banking
- Consumer finance
- Business and corporate banking
- International payments
- Data trading
- Capital markets
- Security and risk management
Anthemis Group invests in startups, including those in the US, Britain, and Europe. Fidor Bank, Happy Money, ABAKA , and PayPerks are among the group’s most prominent advisors.
Location: London, England Balderton Capital was founded in 2000 by Bernard Liautaud and Suranga Chandratillake. They now employ about 100 people who work as venture capitalists and they're based in Canary Wharf.
Their goal is to find startups with the ability to unsettle large industries and they intend on scaling globally.
Since 2000 they've invested in early-stage and late-stage ventures like:
- Assets under management (AUM)
- Earnings before interest, taxes, depreciation, and amortization (EBITDA)
- Envy ratio
- High-yield debt
- Liquidation preference
- Taxation of private equity and hedge funds
- Mergers and acquisitions
Balderton Capital is a flexible FinTech investor which supports startups with their most pressing issues. In addition to providing startups with the opportunity to grow and gain traction in the market, Balderton Capital helps them organize joint events alongside other supported companies from the same market so they receive both direct and indirect support from experts in various fields.
Top Four European VC firms
Best Canadian VC firms
National Crowdfunding & Fintech Association
Located in Toronto, Ontario, the National Crowdfunding and Fintech Association (NCFA) is a FinTech investment firm that offers networking and funding opportunities as well as services to lots of communities. Its CEO, Craig Asano, is an entrepreneur who has spent half his life investing in various projects. He established the NCFA in 2012.The National Crowdfunding and Fintech Association focuses its investments on companies that specialize in:
- Alternative finance
- Peer-to-peer finance
- Cyber investments and tokens
- Blockchain and Bitcoin
- Regulatory technologies
As of today, NCFA has invested in 270 Canadian startups at the seed round, including Lending Loop, FundRazr, Ledn, and Consilium Crypto. This number is continually growing.
Location: Toronto, Ontario.
PitchBook was founded in 2007 by John Gabbert and is a resource that supports startups across North America - with an emphasis on those within Canada and the US.
The business specializes in providing support for startups during the seed stage of development and it focuses its resources on:
- Big data
- Cloud storage
The business has more than 85,260 foundations as clients and it has funded companies such as Cascadia, Manhattan Prep, and Correct & Moring LLP.
Location: Toronto, Ontario and Montreal, Québec
Luge Capital , or ‘Luge’ for short, was established in 2018 by David Nault. The VC firm focuses on early stage fintech startups including those that implement AI technologies for commercial purposes. David’s goal was to inspire modern startups to create best-of-breed financial services. Luge Capital has helped Links, Owl.Co, TipTap, and Aya Payments succeed thus far.
Emerging startups that are incubated by Luge Capital concentrate on the following:
- Data privacy
- Lending algorithms
- Next-gen payments
- Trading services
- Wealth management tools
- Alternative lending solutions
- Process automation
- Regulatory technologies
Location: Montreal, Québec.
Teralys Capital is a financial company created in 2009 by Jacques Bernier and Éric Legault. They work with startups from the financial, life sciences, and IT sectors. The goal of Teralys Capital is to assist startup companies in professional growth by providing them with not only financial help but also building up necessary infrastructure and expertise.
Teralys Capital helps startups that concentrate on creating:
- Risk management
- Data analytics
Top Four Canadian VC investment firms
This article has listed the most well-known investment firms in financial services. These finance companies are involved in giving funding to startups, especially after the 2008 credit crunch, which almost toppled the world's biggest economies. According to research by Business Insider, these are 10 main venture capital firms around the globe.