Beyond capital: What makes a great Fintech investor?

Beyond capital: What makes a great Fintech investor? - Tenity Insights from Davos 2025

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Investors need to act as strategic partners, leveraging their networks, experience, and insights to drive meaningful growth. At the World Economic Forum in Davos, we sat down with Ramin Niroumand, Partner & Head of Motive Ventures, to explore what makes a great investor, how fintech ecosystems evolve, and the role corporate venture capital (CVC) plays in startup success.

This conversation is part of Innovation. Connected – World Economic Forum Davos 2025 Edition, in our episode: 🎙️ Beyond Capital: What makes a great Fintech investor?

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Why ecosystems matter in Fintech Investment

The word “ecosystem” gets thrown around a lot, but in fintech, it holds real significance. According to Ramin Niroumand, strong ecosystems are built on a foundation of collaboration between:

• Investors – Providing capital, guidance, and access to networks
• Startups – Driving innovation and disrupting financial services
• Corporates – Bringing market credibility, infrastructure, and scale

"An investor who just provides money is not enough."

Investors need to actively support startups beyond funding, offering strategic guidance, market access, and network connections. Many startups struggle not because of a lack of funding but due to limited industry experience and the inability to navigate regulatory landscapes. In fintech, one plus one must equal three—meaning the right partnerships create more value than any single entity could achieve alone. When startups, investors, and corporate partners work together, they unlock synergies that accelerate innovation.

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The role of investors beyond capital

For startups, securing funding is just the beginning. The real value of an investor lies in their ability to:

• Provide industry expertise and strategic mentorship
• Make high-value introductions that open doors to potential clients and partners
• Help navigate the regulatory landscape
• Offer support in hiring, scaling, and making key operational decisions

"A network without educated introductions is just a better LinkedIn."

Connections matter, but the right connections at the right time are what make a difference. Investors who introduce startups to potential partners too early—or without a clear strategy—can do more harm than good. Timing and strategic matchmaking are critical.

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Corporate Venture Capital: A double-edged sword?

Corporate venture capital (CVC) has become an increasingly popular model for large financial institutions and enterprises looking to invest in startups. However, it comes with its own challenges.

CVCs can provide:

✔️ Access to industry expertise and resources
✔️ Market validation and credibility for startups
✔️ Potential acquisition pathways

But they can also be risky. If a corporate VC invests in a fintech startup but later decides not to adopt its technology, it can create friction. The startup is left questioning its viability, while the corporate investor holds equity without a clear strategic alignment.

"The best corporate VCs are the ones who are first good investors."

Some corporate VCs invest for strategic branding rather than true alignment. The best ones prioritize startup success over short-term corporate interests, ensuring that their investments lead to real business adoption, not just portfolio expansion. Timing is crucial. Niroumand suggests that corporate VCs should engage only after a startup has established product-market fit (typically post-Series A) to avoid misalignment between funding and actual business integration.

"If even your own investor isn’t using your product, what message does that send to the market?"

👉 A fintech startup backed by a bank or insurance company expects that investor to become a client. When that doesn’t happen, it can hurt credibility. The best corporate investors not only provide funding but actively use and integrate the startup’s solutions.

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The shift in global investment trends

As the investment landscape shifts, so do the strategies of successful VCs and fintech accelerators. Some key trends Niroumand highlighted:

The Rise of thematic investment: Investors are focusing on specific verticals like wealthtech, AI-driven fintech, and private market infrastructure.

Strategic fundraising: Startups are now securing funds from global LPs, including those in emerging markets like the Middle East, where LPs are highly sophisticated and selective.

"The Middle East isn’t just handing out money—LPs there are some of the smartest in the world."

Many mistakenly believe that fundraising in the Middle East is easy. In reality, institutional investors in the region are highly strategic and only back funds with clear long-term value propositions.

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Germany’s tough investment climate: The German VC landscape is currently challenging, with a focus on capital efficiency and profitability rather than high-risk growth bets.

"Germany’s VC scene is tough right now because investors came in too late and wanted immediate returns."

Unlike the U.S., where venture capital has long been a key driver of innovation, Germany’s recent adoption of VC investing led to impatient investors seeking fast profits rather than long-term ecosystem growth. This has resulted in a conservative, risk-averse investment climate.

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What makes a great investor?

A great investor is more than just a source of capital—they are a trusted partner who understands the industry, connects the right people, and supports founders through both successes and failures.

"The best investors are the ones founders call for the small, tough decisions—not just for funding rounds."

A founder’s relationship with their investor shouldn’t just be about negotiating valuation. The most impactful investors are the ones who help with day-to-day challenges, from hiring key talent to refining go-to-market strategies. As fintech continues to evolve, the best investors will be those who actively contribute to the ecosystem, foster innovation, and align their interests with startup success.

Key Takeaways for founders and investors

✔️ Startups should look for investors who offer more than money—strategic guidance is key.
✔️ Fintech ecosystems thrive when investors, startups, and corporates collaborate.
✔️ Corporate VCs need to engage at the right stage to create real value.
✔️ Global fundraising trends are shifting, with thematic and strategic investments on the rise.

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For more insights into fintech investment trends, corporate venture capital, and startup growth strategies, subscribe to Innovation. Connected – World Economic Forum Davos 2025 Edition.

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