VC fundraising for embedded finance companies
Embedded finance has been through one of the harder valuation resets in fintech. The 2021 narrative - every brand becoming a fintech - collided with sponsor bank consent orders, the Synapse failure and thinner programme economics than gross revenue suggested. Capital still flows but to a narrower set of operators with demonstrable net revenue per programme and a credible regulatory posture.
The investor base has narrowed to fintech specialists who actually understand sponsor-bank economics - Ribbit, QED, Bain Capital Ventures, Andreessen - alongside infrastructure-focused growth funds and the corporate VCs of the card networks and large banks (Mastercard Foundry, Visa Ventures, American Express Ventures, JPM Strategic Investments, Citi Ventures). Generalists who priced rounds in 2021 have largely stepped back. Flow has direct relationships across this group.
Flow has experience running VC fundraising processes for embedded finance companies across BaaS platforms, card issuing and programme management, payments infrastructure, embedded lending and embedded insurance. Our extensive investor network spans early-stage seed funds, growth-stage investors, and strategic and corporate VC arms.
"Embedded finance" KPIs VC investors look at
The metrics venture investors benchmark before pricing a round - in diligence, at the IC table, on the term sheet.
TPV
Net revenue
Take rate
Cards issued / active
Active programmes
Revenue per partner
Programme reserves
Sponsor bank cost
Partner concentration
Embedded finance valuations in May 2026
Public embedded finance comps trade at 2.2x EV/Revenue. Median revenue multiple across embedded finance VC rounds was 8.8x in the last 12 months.
2.2x
Median EV/Revenue as of May 2026 for public embedded finance companies
1.5x
Block is the highest valued public embedded finance company based on EV/Revenue (excluding outliers)
0.4x
Median EV/Revenue across embedded finance M&A deals in the last 12 months
8.8x
Median EV/Revenue across embedded finance VC rounds in the last 12 months
Key recent embedded finance VC rounds
$250M Series C raised by Rain was the largest embedded finance VC round completed in the last six months.
See all embedded finance VC rounds| Logo | HQ | Description | Investors | |||||
|---|---|---|---|---|---|---|---|---|
Jan-26 | Rain |  | Rain is a New York-based infrastructure provider enabling stablecoin wallets, payment cards, and cross-border transfers via a single API for fintech platforms and banks. Partners convert fiat to USDC or PYUSD, issue Visa-linked virtual cards, and settle merchant payouts globally. Launched in 2022, the platform handles KYC verification, AML screening, and connections to networks like Visa Direct and Circle. | Bessemer Venture PartnersDragonfly+7 | $250M | $1.9B | Series C | |
Jan-26 | Alpaca |  | Alpaca is a New York-headquartered developer platform offering API-based brokerage services for stock and cryptocurrency trading. The infrastructure provides commission-free execution, real-time market data feeds, paper trading environments, and advanced order types including algorithmic strategies. Backed by Y Combinator and investors like Spark Capital, Alpaca powers trading apps for retail and institutional users across multiple global markets. | Nol Card balance checkDiagram Ventures+10 | $150M | $1.1B | Series D | |
Jan-26 | Stream |  | Stream is a UK-headquartered financial services company offering on-demand earned wage access through its mobile app at stream.co. Employees access up to 50% of accrued wages instantly without fees, employer advances, or credit checks. The service integrates with payroll systems like ADP and Xero, reducing reliance on payday loans and overdrafts while providing full payment control to combat debt cycles for hourly and salaried workers. | Ascension VenturesBalderton Capital+6 | $90M | - | Series D | |
Apr-26 | Comfi |  | Comfi is a UAE-based embedded finance platform for B2B trade in MENA that lets suppliers, manufacturers, and distributors extend 30–90 day payment terms to buyers while securing upfront payments. The company takes on credit risk and collections, embedding into tools like Wafeq, Zoho Books, and ERPs via AI underwriting based on transaction data and payment behavior. Comfi has financed over $25M in transactions for 300+ suppliers and 1,000 SMEs, backed by $25M venture debt with integrations to AECB and UAEPass, and plans Saudi expansion in 2026. | Iliad PartnersRaw Ventures+1 | $65M | - | Seed | |
Jan-26 | Pomelo |  | Pomelo is a Latin America-based fintech infrastructure provider headquartered in Mexico City, specializing in card issuing, processing, and management APIs. The company enables banks and retailers to launch virtual and physical cards rapidly, supporting programs in Mexico, Colombia, and Brazil. Pomelo integrates with Visa and Mastercard networks for seamless domestic and international transactions. | Adams Street PartnersEndeavor Catalyst+5 | $55M | - | Series C | |
Mar-26 | Cross River Bank | | Cross River Bank is a Fort Lee, New Jersey-headquartered chartered bank providing embedded finance infrastructure to fintech firms. It delivers API-based banking services including loan origination, payment processing, cryptocurrency deposits, and compliance tools. Established in 2008, the bank powers platforms for clients such as Affirm, Coinbase, Stripe, and Upstart through partnerships that handle billions in transaction volume annually. | T. Rowe Price | $50M | - | Undisclosed stage | |
Dec-25 | Truemed | | TrueMed is a payments platform enabling health and wellness businesses to accept HSA and FSA funds. It deploys as a Shopify app or code snippets, requiring no engineering for setup in under 30 minutes. TrueMed verifies eligibility through integrations with major FSA administrators like WageWorks and HealthEquity, processing reimbursements for services in fitness, nutrition, and therapy categories. The system handles PCI-compliant transactions and generates IRS-compliant receipts. Headquartered in Denver, TrueMed serves over 1,000 merchants including gyms, supplement brands, and telehealth providers across the US. | Andreessen HorowitzBessemer Venture Partners+3 | $34M | - | Series A | |
Feb-26 | Tapi | | Tapi is a Latin America-focused fintech provider of e-wallet and merchant payment solutions for online and in-store transactions. Panama-based, it offers digital wallets with balance management, transaction history, payment processing integration, cross-border transfers, currency exchange, fraud detection, and sales analytics for businesses. | Endeavor CatalystKaszek+1 | $27M | - | Series B | |
Jan-26 | Cloover |  | Cloover is a Paris-headquartered fintech platform delivering embedded finance, software, and energy solutions for renewable energy installers across Europe. The company equips solar panel and heat pump professionals with point-of-sale financing, CRM tools, and data analytics to simplify customer financing and project management. Cloover processes thousands of sustainable home upgrade transactions monthly, partnering with banks and energy firms to support France's energy transition goals. | BNVT CapitalBosch Ventures+5 | $22M | - | Series A | |
Feb-26 | Simplified Financial Solutions Company |  | Simplified Financial Solutions Company is a Dubai-based fintech providing corporate card issuance and expense management for startups and SMEs in the Middle East. Clients receive virtual Visa cards for immediate spending control, physical cards for travel, and automated receipt matching via OCR scanning. The platform integrates with QuickBooks and Xero for real-time reporting, supporting multi-currency transactions across UAE, Saudi Arabia, and beyond. | ANB CapitalBreyer Capital+8 | $20M | - | Series A | |
Jan-26 | NowPay |  | NowPay is a FinTech company that advances wages to corporate employees on demand, allowing access to earned pay anytime during the pay cycle. Headquartered in Dubai, United Arab Emirates, NowPay partners with employers across the Middle East to enhance financial wellness via its platform at nowpay.cash. | Tas'heel Finance | $20M | - | Strategic investment | |
Feb-26 | Avenia |  | Avenia is a São Paulo-headquartered fintech building infrastructure for cross-border payments in Latin America. Its API enables platforms to integrate stablecoin-powered FX settlements with built-in regulatory compliance. The company targets e-commerce and remittance providers across the region. | Accel Ventures scout fundbig_bets+9 | $18M | - | Series A | |
Apr-26 | Ratio | | Ratio is a B2B fintech platform offering buy-now-pay-later financing for SaaS and subscription businesses. San Francisco-headquartered, it integrates payments, predictive pricing, and analytics to unlock capital from recurring revenue contracts. Ratio provides non-dilutive funding based on ARR metrics. The platform connects with Stripe and QuickBooks. Founded in 2021, it serves software companies scaling procurement. | Preetish NijhawanHoneystone Ventures+3 | $16M | - | Undisclosed stage | |
Jan-26 | Incard | | Incard is a Tel Aviv-headquartered fintech platform providing corporate cards, expense management, bill pay, and accounting tools tailored for e-commerce merchants. Integrations with Shopify, Amazon, and BigCommerce automate reconciliation and cash flow tracking. Designed for DTC brands and marketplaces, it offers real-time spend controls and virtual cards to cut costs on international payments and subscriptions across Europe and North America. | Founders CapitalMount VC+2 | $14M | - | Series A | |
Mar-26 | Order | | New York City-headquartered Order operates a guided B2B marketplace with predictive applications and fintech integrations. Founded in 2016, the platform simplifies procurement for finance, operations, and teams at companies like WeWork and SoulCycle, managing nearly half a billion dollars in annualized spend. | Evolution VC Partners | $7.1M | - | Undisclosed stage |
VC investors active in embedded finance
QED Investors is the most active VC investor across embedded finance, having invested in 11 startups in the last three years.
See all embedded finance VCs| Logo | HQ | Description | Key portfolio | |||
|---|---|---|---|---|---|---|
QED Investors | | QED Investors is a global venture capital firm focused on fintech, providing early- and growth-stage capital to companies across banking, lending, payments, insurance, real estate technology, and B2B financial software. Founded in 2007 by Nigel Morris, co-founder of Capital One, and Frank Rotman, the firm is headquartered in Alexandria, Virginia and invests across the United States, Latin America, Europe, the United Kingdom, Southeast Asia, and Africa. QED has backed many of the sector's most prominent companies, including Nubank, Credit Karma, SoFi, Klarna, Remitly, Avant, Kavak, Bitso, Konfío, Creditas, ClearScore, and Flutterwave, and is widely recognized as one of the most active specialist fintech investors globally. | Simplified Financial Solutions CompanyClooverAtomic+2 | 11 | Series A | |
Y Combinator | | Y Combinator is a San Francisco-headquartered startup accelerator that funds and mentors early-stage technology companies across sectors like software, biotechnology, and fintech. Since its inception in 2005, it has propelled alumni including Airbnb, Dropbox, and Stripe through intensive three-month programs featuring Demo Days and investor networks. | FlexAtomicSlash+2 | 9 | Pre-seed | |
Endeavor Catalyst | | Endeavor Catalyst is a co-investment fund exclusively backing Endeavor-supported entrepreneurs globally. New York-headquartered, it has deployed over $100 million into 50+ companies like Rappi and Swiggy, achieving 5x net returns since 2019. The fund syndicates deals with LPs including Tiger Global and SoftBank, focusing on Series A to C stages in emerging markets like Latin America and India. Managed by Endeavor, it leverages a network of 4,000 mentors for due diligence. | TapiPomeloAlpaca+2 | 8 | Series B | |
Antler |  | Antler is a Singapore-headquartered global venture capital firm founded in 2017 that invests in early-stage tech companies. It operates day-zero programs in 27 cities, backing 1,000+ startups with $100 million deployed annually across AI, fintech, and sustainability. Portfolio includes unicorns like Hold One and Tiqets, with a network of 3,000 mentors and 700+ investors for follow-ons. | CreemRizoma TechnologiesFastn+2 | 8 | Pre-seed | |
Kaszek | | Buenos Aires and Sao Paulo-headquartered Kaszek invests in seed through Series B technology companies across Latin America. The venture capital firm targets fintech, e-commerce, logistics, and software sectors, providing operational support in strategy, team building, and scaling. Kaszek manages funds backing over 100 portfolio companies regionally. | TapiPomeloAplazo+2 | 6 | Series B | |
MONASHEES | | MONASHEES is a São Paulo-headquartered venture capital firm investing in early-stage technology startups across Latin America. The pioneer in the region since 2005, it backs over 150 companies including Nubank and 99, providing expansion capital through funds targeting fintech, edtech, and logistics. MONASHEES supports founders from seed to Series C stages. | 180 SegurosIORQMonato+2 | 5 | Seed | |
Techstars | | Techstars is a Boulder-headquartered global network founded in 2006 that operates over 50 accelerators annually across 15 countries. It invests $120,000 in exchange for 6 percent equity in 500 startups yearly, spanning AI, sustainability, and healthcare. The firm manages a venture fund deploying capital into alumni companies and runs corporate partnerships with brands like Amazon and Barclays for innovation pilots. Techstars portfolio exceeds 3,500 companies valued over $15 billion collectively. | UpwardliFlowpayPositive Finance+2 | 5 | Seed | |
Clocktower Technology Ventures | | - | XimpleMonatominu+2 | 4 | Seed | |
Ribbit Capital | | Ribbit Capital is a Palo Alto-headquartered venture capital firm targeting financial technology and services companies. It invests in infrastructure builders across lending, payments, insurance, banking, and digital assets, with portfolio companies including Coinbase, Robinhood, Affirm, and Brex. The firm supports early-stage to growth investments transforming global financial access and delivery models. | AlpacaPlaidParaFin+2 | 4 | Series A | |
Index Ventures | | Index Ventures is a London-headquartered venture capital firm investing in early-stage technology companies across Europe and the United States. The firm manages over $10 billion in assets, backing companies like Robinhood, Datadog, and Cohere in sectors such as fintech, SaaS, and AI. Founded in 1996, Index Ventures has offices in San Francisco, New York, and Geneva, achieving exits through IPOs and acquisitions including Dropbox and Revolut. It focuses on seed to Series B rounds, supporting portfolio firms with operational expertise. | PomeloBridgeCloover+2 | 4 | Pre-seed |
Founders and investors we've worked with
We've supported winning builders across embedded finance and beyond.
Orka
We advised Elysian Fields on its investment into Orka, a Reykjavik-based portfolio of online consumer lending platforms, supporting deal structuring and growth-capital deployment in the Icelandic fintech market.
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Krita
We advised Swiss investor Elysian Fields on its growth investment into Krita, the leading factoring platform in the Icelandic market.
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GoTrendier
We advised GoTrendier, the leading second-hand fashion marketplace in LatAm (Mexico and Colombia), on its $14m Series B fundraise led by IDB.
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Ziik
We acted as fundraising advisor to Ziik, a Copenhagen-based all-in-one social intranet and internal communication SaaS platform, on its growth funding round.
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Sentryc
We led the capital raising process for Sentryc, a Berlin-based AI-driven brand protection and IP software provider, on its growth round led by Seventure Partners.
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