How Embedded Finance Can Help VCs Increase Portfolio Value – Activate at Money 20/20 Highlights

Leading VCs weigh in on how to best utilize embedded finance and bundling to help portfolio companies monetize.
Angela Bao
Angela Bao
November 29, 2023
How Embedded Finance Can Help VCs Increase Portfolio Value – Activate at Money 20/20 Highlights

Amidst the challenges posed by a capital crunch, venture capitalists are strategically emphasizing efficiency, judicious growth, and effective monetization, with embedded finance emerging as a pivotal player in these crucial areas. Treasury Prime’s user conference, Activate, held at the Venetian during Money 20/20, gathered expert panelists to discuss how venture capitalists can leverage embedded finance to increase the value of their portfolio companies.  

Remy Carole, Chief Operating Officer at Treasury Prime, moderated the panel, “How VCs Can Increase Portfolio Size by Leveraging Embedded Finance.” Panel participants included Matheus Riolfi, CEO of Tint, Dan Kimerling Founder and Managing Partner at Deciens Capital, and Amias Gerety, Partner at QED Investors.

How VC portfolio companies can leverage embedded finance top insights:

  • In the VC world, a major focus is on supporting platforms that can monetize in multiple ways. Kimerling says the best way for portfolio companies to monetize is through bundling services, and the combination of verticalized SaaS software and embedded banking can be a powerful bundle when it advances the core business.
  • The most successful embedded finance companies have a strong core business that is already delivering value to their customers, said Riolfi. They need a strong foundation on which they can layer financial services to add even more value and increase conversions. 
  • Gerety says that VCs and founders need to understand their role in a customer’s business process and how the customer thinks of their role when embarking on an embedded finance program. Some questions that founders or VCs needs to ask themselves is, “What permission does my customer give me in terms of what else they want me to do?” says Gerety. “If you’re not touching something like a system of record or a checkout flow, it’s going to be harder to get there.”

Here are some highlights from the panel:

Watch the full panel on-demand for more detailed discussions about a strategic approach to embedded finance services for portfolio companies: 

Want to see other Activate panels? Watch more video highlights.

Wondering how embedded banking could help your portfolio company or fintech? Contact Treasury Prime — we have established fintech and embedded finance clients and extensive compliance experience. Read more about our $40 million Series C Funding and why Tearsheet named us the Best Banking as a Service company two years in a row. Talk to the best embedded finance team in the industry.

Related VC embedded finance content:

How Embedded Finance Can Benefit VC Portfolio Companies

Why Fintech Compliance Should be Top-of-Mind for VCs

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