Top Angel Investors for Fintech and SaaS

The boom in fintech and SaaS startups has created unprecedented opportunities for aspiring entrepreneurs to get their foot in the door and build successful ventures. While the space of angel investors has been vibrant for several years now, the incredible growth in funding over the past two years has definitely given it a huge push. In fact, angel deals reached a value of $10.3 billion in 2022, which signifies the highest value that has been recorded throughout the period of consideration. Fortunately, the interest observed in the market has resulted in a growing list of angel investors willing to invest in startups. This post will focus on some of the most prominent angel investors in the fintech and SaaS sectors.

Fintech: The Future Of Finance

With innovation and digitization at the center of the financial services industry, fintech is the new buzzword. The emergence of various fintech products and services, such as online lending and digital wallet, has made the industry one of the most thriving sectors in the financial sector. The US Fintech Market is poised to grow at a CAGR of 11% by 2024, while the global market is valued at over $187 billion in 2022. Here are the top 5 fintech-focused angel investors:

1. Taavet Hinrikus - Co-founder and Chairman of TransferWise

As the co-founder of TransferWise, Hinrikus is among the industry's pioneers, having been at the helm of building a global fintech giant that provides peer-to-peer money transfer services. According to statistics, 20% of Taavet Hinrikus's investments are in the fintech sector, where the average range of investment is from $120k to $300k for each round. The list of startups that Hinrikus has funded since its inception includes Uncapped, Farewill, Radix, and Primer.

2. Constance Freedman - Managing Partner and Founder of Moderne Ventures

Constance Freedman is a managing partner at the VC firm Moderne Partners, which primarily invests in early-stage and growth-stage tech companies. With a vast portfolio of companies over the years, Moderne Ventures is among the most prominent angel investors in the fintech sector. The latest investment of $12M was Series A at EasyKnock, a sale-leaseback company based in New York.?

3. Lance White - Executive Director of Morgan Stanley

Lance's early investment in AngelList established him as a fintech player, and he continues to expand his portfolio even now. Currently, he has several startups under his belt and is an active angel investor in the fintech domain. Lance White has made several investments in companies such as Fundtable, Addepar, and ClearTax. As an Executive Director at Morgan Stanley, Lance White brings market intelligence, relationships, and financial resources to his portfolio companies.??

4. Garry Tan - Managing Partner at Initialized Capital

With over a decade of experience in the investment field, Garry Tan has been leading the way in the fintech sector. The attention that he has been paying to this sector is demonstrated by the fact that his portfolio consists of some of the most prominent fintech companies in the industry, including Digit, Patreon, and TrueLink Financial. He is known for his hands-on approach in the field and has invested in several funding rounds.

5. Charlie Songhurst - Founder and Partner of Katana Capital

One of the most prominent angel investors in fintech, Charlie Songhurst, is known for his unending pursuit of perfection. Songhurst is particularly fascinated by the innovation of finance, which has led him to invest in companies such as Montonio Finance, Treyd, Credit Kudos, Fluidly, and more. Charlie Songhurst's investments have led to successful exits for his portfolio companies, which include a payment platform named Verse.

?Image Credit: Deal Room

The above graph shows Fintech VC deals and investment

SaaS: A Marketplace For Software

Software as a service (SaaS) is a software licensing model in which software and databases are centrally hosted and available to customers over the Internet. The SaaS market is projected to grow at a CAGR of more than 25% from the 2021 to 2028 period; the global market was valued at $165.9 billion in 2021. Following are the top 5 angel investors for SaaS:

1. Dona Valentine - Founder of Sequoia Capital

What makes Dona Valentine notable is the fact that she founded Sequoia Capital, one of the most prominent VC firms in the world . Based in Menlo Park, California, she has been an active angel investor in the SaaS market with her portfolio companies, including Zarget and Namely. Currently leaning heavily toward SaaS, her investments have proven to be a lucrative move, in addition to strengthening her standing in the VC sector.

2. Jason Lemkin - Founder of SaaStr Fund

Jason Lemkin's experience in SaaS is vast, as he is the founder of the SaaStr Fund - a $90 million venture fund that focuses on helping founders fuel growth. The average investment size of The SaaStr Fund is $500K and $6 million per startup while providing the expertise, connections, and capital to help startups fully realize their vision. Investing in the SaaS industry, Jason Lemkin has made several investments in startups such as Mixmax, Automile, and Teamable.

3. Christoph Janz - Co-Founder and Partner at Point Nine

Founder of Point Nine Capital, Christoph Janz, and the firm's partners are recognized for their success in backing the world's most promising companies in the SaaS space. Under his guidance, Point Nine Capital has amassed a strong portfolio of companies, including Container xChange, Zenaton, and Factorial. They have been investing actively in the SaaS market and providing the necessary capital to enable startups to focus on building market share, customer acquisition, and revenue growth.

4. Greg Sands - Founder and Managing Partner at Costanoa Ventures

With a significant number of investments in the SaaS market, Greg Sands has a great deal of experience in the field and has a proven track record as an angel investor. A long-time partner of Costanoa Ventures, Greg has been helping the firm build its portfolio with companies such as Elevate Security, Alation, and Skedulo.

5. Ed Sim - Founder at Boldstart Ventures

The urge to invest in the SaaS space has led Ed Sim to launch Boldstart Ventures. With the vision of becoming a leading early-stage venture capital firm, Ed Sim has been investing in companies with the potential to compete globally. With a phenomenal record of success in finding the most promising SaaS businesses, the Boldstart Ventures portfolio includes such companies as BigID, Catalytic, and SecurityScorecard.

Image Credit - SVB

The above graph shows SaaS VC deals and investment

Angel investors play an integral role in the growth of startups, particularly during the early stages . The investors bring their own unique skills and insights to the startups they are funding while working to bridge the gap between the investor and startup communities.