Sheel Mohnot - Better Tomorrow Ventures (BTV)
“Our tagline is ‘everything is fintech.’ Many vertical SaaS companies ultimately are fintech companies and derive the majority of their revenue from fintech at scale.”
Connect with Sheel
https://www.linkedin.com/in/smohnot/
VC Uncovered’s View
Venture capital often finds it challenging to maintain agility, frequently operating with the pace of a legacy institution. Better Tomorrow Ventures (BTV) represents a departure from that traditional bureaucracy. Founded by Jake Gibson and Sheel Mohnot, BTV operates with the speed and conviction of the founders it backs. The firm focuses on the earliest stages of fintech, often engaging before a company even has a name through its incubation program, The Mint.
Sheel Mohnot embodies the shift toward a more empathetic and specialized era of investing. He brings a deep operator’s perspective to the table, having exited multiple companies, including FeeFighters and Innovative Auctions. Rather than focusing on legacy playbooks, BTV prioritizes being the firm the founders wish they had when they were starting out. They provide hands-on support that extends beyond a check, assisting with everything from recruiting to go-to-market (GTM) strategy.
In this week’s VC Uncovered, we see why specialization matters. Sheel’s focus on fintech allows him to see opportunities where others see noise. He views software not just as a tool, but as a vehicle for financial services. This nimble approach allows BTV to move quickly on emerging shifts, from AI-driven consumer apps to the rise of prediction markets. This level of immersion suggests that the next generation of great investors will be those who build alongside founders during their toughest moments.Meet Sheel
Q: If you could be anywhere, eating, drinking, and reading whatever you like most, where would you be and what would those things be? Paint the picture.
A: I love traveling, especially with friends. Recently, for my wife’s 40th birthday, we went on a trip with 40 of our friends. We were on a boat in the Caribbean; it was an amazing time. I was tired by the end of it, but I felt fulfilled. I’d love to do that again.
Six Weddings and a Metaverse
Most people have an easy answer for where they got married, but mine is a bit more complex. Our legal wedding was sponsored by Taco Bell in the metaverse. While we think of our ceremony near Mexico City as our main wedding, we also held celebrations in India, Cleveland, Pittsburgh, and Burning Man. To clarify a common question, every single one of those weddings was to the same person.
From Zoom Bachelor to Justin Bieber
I have a very small cameo in the “Stuck with U” music video by Justin Bieber and Ariana Grande. This happened because I was on a pandemic-era dating show called the Zoom Bachelor. Scooter Braun happened to be watching, and through a series of events, I ended up in the video for a few seconds. If you look up the song on Wikipedia, I am fairly certain I am the only person listed who does not have his own page.
Key Quotes
“Our tagline is ‘everything is fintech.’ Many vertical SaaS companies ultimately are fintech companies and derive the majority of their revenue from fintech at scale.”
“Especially early in a career, optimize for learning: be open, be more reflective, and be willing to change your mind. The same is true in venture. Avoid being stubborn about a mistaken belief.”
“In private markets investing, you win the deal by being the best partner. I believe the asset chooses the investor in venture, and that is unique to our asset class.”
“We need to see more empathy in this industry. It helps to realize that people are putting their hearts and souls into this and trying their best.”
“I have seen founders post on X saying, ‘I met Jake and he passed on my company, but I got so much out of the interaction.’ It makes me proud that someone said that about our team.”
Background and Personal Journey
Experiences Shaping My Investment Approach
When I was an operator, I was raising money on the other side of the table. I first got into investing by writing small checks and trying to help founders avoid the mistakes I made. Being an operator gives you a level of respect for what it takes to build a company. I always believed venture capital was a compelling field and something I might be good at. Over time, I have learned more about this craft and am increasingly happy to do it.
Philosophy and Insights
Investment Philosophy: Everything is Fintech
Our tagline is that everything is fintech. I believe many vertical software-as-a-service (SaaS) companies function as fintech companies and derive the majority of their revenue from financial services at scale. This stems from observing how massive software companies like Shopify and Toast eventually derive the majority of their revenue from financial services rather than just software subscriptions. Because I am a fintech investor, everything looks like a fintech opportunity to me. This perspective influences how I assess every software opportunity.
If you are building the primary software product that a small business uses to manage their operations, they are naturally going to want to manage their finances through that platform as well.
The Power of Embedded Financial Services
When companies look to implement these services, we believe it makes the most sense to link up with specialized players. We have invested in several companies that facilitate this infrastructure. This includes Unit for embedded banking, Salsa for payroll, Layer for accounting, and Sticker for procurement. Partnering with these providers makes life much easier for the end customer by offering more essential services within a single ecosystem.
Trends and Future Vision
Scaling Internal Operations with AI
We use AI a lot internally. Personally, I use Granola for meeting notes and research. It is a fantastic tool that allows us to conduct research quickly and stay updated on what is happening with our portfolio and new investments. Since we are actively investing in AI companies, it makes perfect sense for us to understand and utilize the technology at every level of our own business.
Emerging Technologies & Risk
I have evolved my view on risk through missed opportunities and technological shifts. I initially missed the potential of prediction markets. I have since realized they are going to be a massive sector; they are already much larger today than I anticipated a year ago.
We have invested heavily in AI because we see the implications in our portfolio so aggressively. I am also increasingly interested in consumer technology. Ad targeting is improving significantly with the help of AI, and prediction markets continue to be a major area of interest.
Improving the Ecosystem
We strive to be materially supportive for founders raising their next round of funding by actively introducing them to next-round investors. Beyond that, we want every founder to gain value from their interaction with us, regardless of our investment decision. We provide clear advice or a specific reason why we decided to pass.
I would love to see more empathy in the venture capital ecosystem. It is important to realize that founders are putting their hearts and souls into their work. There needs to be a greater realization of that human element across the industry.
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