The fintech comeback: Sheel Mohnot on why 'everything is fintech' and what's getting funded in 2025 - Tearsheet
Briefly

Fintech investments are rebounding after a downturn in 2022 and 2023. Early-stage funding is returning, directing interest towards infrastructure, embedded finance, and AI applications that resolve practical issues. Sheel Mohnot, co-founder of Better Tomorrow Ventures, emphasizes that vertical SaaS companies are increasingly generating revenue from financial services. The investment landscape experienced significant shifts, with BTV's best performance occurring in Q1 2025 after a challenging period. Successful companies are characterized by their founders' abilities to iterate and adapt to market changes.
"2016 to 2021 was like a straight line upward; towards the end it was literally vertical. And then it crashed pretty hard in 2022-2023... Q4 into Q1 this year, they were back."
"I think it all comes down to a founder and their ability to iterate and adapt to changes in the market."
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