The Three Most Active Early-Stage Fintech Investors
Despite a two-and-a-half-year 'downturn' in the fintech sector, investors are still deploying an average of $7 billion per quarter and the U.S. continues to dominate global fintech investments, representing approximately 45% of total funding in the first half of 2024, according to S&P Global. In Q4 2024, fintech funding grew 17% year-over-year, even as the number of transactions dropped by 28%, reflecting a trend toward fewer but larger deals. So, who is still investing in early-stage fintech startups?
PitchBook shows that the most active early-stage fintech investor in the U.S. right now is Y Combinator, one of the most well-known startup accelerators alongside its peers like Techstars and Plug and Play. In addition to traditional venture firms like Alumni Ventures, Everywhere Ventures and Andreessen Horowitz, the second most active early-stage fintech investors are focused on crypto and blockchain, with firms like Hack VC, MH Ventures and Robot Ventures leading the charge. To understand what top early-stage investors are looking for today, I spoke with three of these.
Mike Collins, founder and CEO of Alumni Ventures, launched the firm in 2013 with a vision to provide retail investors with access to high-quality venture capital opportunities. Having started in venture capital in 1986, Collins was frustrated by the limited investment options available to individuals compared to institutions. His goal was to create a platform where retail investors could easily and lucratively participate in this asset class.
Today, Alumni Ventures is one of the most active venture capital firms in the world, having raised nearly $1.5 billion from over 11,000 investors and invested in more than 1,400 companies. The firm exclusively follows a co-investment model, partnering with leading venture capital firms such as Sequoia. It typically invests between $50,000 and $5 million in early-stage companies, deploying around $250 to $300 million annually.
Collins emphasized that Alumni Ventures does not attempt to time the market, preferring to invest consistently. Its investment thesis prioritizes the size of the problem being solved, the strength of the team, and early traction. A distinguishing factor is its reliance on signals from lead investors—companies with top-tier lead investors often indicate strong potential.
For entrepreneurs seeking investment, Collins highlighted the importance of securing a warm introduction to a venture capital firm, viewing it as a crucial test of an entrepreneur's resourcefulness. He advised founders to thoroughly research potential investors, build strategic connections, and approach fundraising as a structured process requiring persistence and resilience.
Looking ahead, Collins sees major opportunities in fintech through disintermediation, decentralization, and blockchain technology. He believes that innovation will continue to emerge in waves, with each cycle solving new problems and creating further disruptions in the financial sector.
Scott Hartley, co-founder and managing partner of Everywhere Ventures, has built a unique venture capital model focused on a global founder community. Originally established in New York City as a collective of early-stage founders, the firm evolved into a worldwide network of investors and entrepreneurs spanning 30 countries and supporting over 300 portfolio companies.
Hartley explained that Everywhere Ventures began in response to a gap in early-stage funding in New York. Unlike Silicon Valley, New York lacked a deep pool of experienced angel investors in 2017–2018. By pooling capital from founders and operators, the firm created a venture model where experienced entrepreneurs backed the next wave of startups. When the COVID-19 pandemic led to geographic dispersion the firm embraced its global potential, expanding its reach to emerging startup ecosystems worldwide.
The firm operates as a traditional venture fund, with limited partners consisting primarily of founders and operators. Capital is centrally deployed by Hartley and his co-founder, Jenny Fielding, who invest in pre-seed startups with checks ranging from $50,000 to $250,000. They focus on what they call the "table stakes economy," emphasizing fintech, healthcare, future of work and infrastructure.
In fintech, Hartley sees opportunities in infrastructure, cybersecurity, identity management and risk mitigation. With fintech increasingly embedded into various industries, Everywhere Ventures backs startups working on payment systems, fraud prevention and digital identity verification. The firm has invested in Smile ID, an African-based identity management company, and has experience in supporting KYC and security solutions globally.
Hartley highlighted the importance of warm introductions for founders seeking venture capital. While the firm occasionally funds startups from cold outreach, the vast majority of investments come from trusted referrals. He also stressed that a founder's approach to fundraising—speed, preparedness, and transparency—reflects their ability to run a company effectively.
Looking ahead, Hartley remains optimistic about fintech's evolution, particularly in emerging markets. Everywhere Ventures continues to identify opportunities where business model arbitrage, technology shifts and regional advantages create space for the next generation of startups to thrive.
Ed Roman, managing partner at Hack VC, co-leads one of the most active early-stage venture capital firms specializing in Web3 and crypto fintech with over 200 investments on their books. Roman believes decentralized finance represents a once-in-a-generation opportunity to reshape the financial system, similar to how the stock market emerged a century ago.
Hack VC operates as a conviction-driven investor, leading and co-leading pre-seed, seed and Series A rounds. Last year, it ranked as the second most active crypto VC firm globally, writing checks into high-potential crypto projects. The firm has backed several multi-billion-dollar blockchain protocols, including Movement, a security-focused protocol, Berachain, a fintech DeFi network and Babylon, a platform that enables Bitcoin holders to earn yield while securing other networks.
With such a high investment volume, Hack VC benefits from strong inbound deal flow. The firm's reputation attracts top founders, many of whom come through referrals from other investors, successful entrepreneurs, or Hack VC's own portfolio companies. Roman noted that, compared to mainstream venture capital, early-stage crypto is a smaller industry with fewer active funds, allowing Hack VC to see most promising deals before they hit the market.
When it comes to selecting investments, Roman emphasized the importance of mission-driven founders who are committed to advancing blockchain technology rather than chasing short-term hype. Following the collapse of FTX, he observed that many opportunistic 'tourist' founders exited the space, leaving behind a more dedicated pool of entrepreneurs. Hack VC also leverages its highly technical team to assess complex blockchain protocols, ensuring thorough due diligence.
For founders seeking investment, Roman encourages warm introductions through trusted connections but is also accessible via email and Telegram. He advises entrepreneurs to focus on fundamental infrastructure rather than gimmicky trends, highlighting DeFi, crypto-AI and blockchain infrastructure as the most promising sectors.
Looking ahead, Roman sees major tailwinds for crypto adoption, including regulatory improvements, growing acceptance of stablecoins for global transactions and even political support. With figures like David Sacks shaping pro-crypto policies in Washington, Hack VC believes the sector is entering a new era of legitimacy and innovation. Despite the risks inherent in crypto, Roman remains confident that blockchain technology will continue to revolutionize financial systems over the next decade.
Next, meet 'The Five Most Active Early-Stage Climate Tech Investors'
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