Fintech Nation Capital Strategy: Building Ecosystem Funds for Inclusive Growth

Fintech Nation, founded by Varun Mittal has evolved over the past decade into a multifaceted development institution focused on fostering fintech innovation and investment across Southeast Asia. Central to its capital strategy is the creation and management of ecosystem funds designed to democratize access to capital, support fintech founders, and deliver fair outcomes for investors and partners alike. Fintech Nation’s capital strategy is focused around ecosystem funds, drawing on publicly available information and the organization’s stated mission and operations.

Origins and Philosophy of Fintech Nation Capital Strategy

Fintech Nation Fund (FNF), along with its Co-Founder Vanessa Ho, has emerged as a permanent capital vehicle based in the British Virgin Islands (BVI), set up to invest in early-stage fintech ventures across Southeast Asia. The fund is anchored by Varun Mittal & Vanessa Ho and managed in collaboration with a regional venture capital partner. Over the years, FNF has invested in a diversified portfolio spanning payments, insuretech, healthtech, and HR SaaS, with a focus on sub-$10 million valuations and minority stakes typically below 10% ownership.

Complementing FNF is Fintech Nation Angels (FNA), an initiative that pools capital from hundreds of founders and industry operators to back emerging fintech ventures. FNA operates on a deal-by-deal basis using Special Purpose Vehicles (SPVs), with a carry-only fee structure that aligns the interests of deal leads and entrepreneurs.

The overarching philosophy driving these funds is to provide smart, transparent, and simple wealth management solutions for investors traditionally underserved by private markets. This approach addresses the challenges faced by many investors, such as limited access to private credit, digital assets, and fixed income opportunities, as well as barriers to private banking services

Why Ecosystem Funds? Responding to Market Dynamics and Investor Needs

Post the 2021-22 overvaluation bubble, private market deal flow tightened significantly, and liquidity for exits became scarce. Fintech Nation recognized the need to evolve beyond traditional private equity investments to continue supporting fintech founders and delivering impact at scale. Ecosystem funds were conceptualized to:

• Democratize access to fair investment outcomes for a broader investor base.

• Help founders build robust companies through strategic capital and operational support.

• Create lasting impact in the fintech ecosystem by making bold, mission-aligned bets.

• Provide investors from Fintech Nation Angels and beyond with diversified access to asset classes like private credit, digital assets, and fixed income, which were previously difficult to access reliably

  
  

Unique Capabilities and Value Proposition of Fintech Nation Ecosystem Funds

Fintech Nation’s ecosystem funds differentiate themselves through several key capabilities:

• Structuring: Funds are designed with crystal-clear liquidity options, transparent fees, and no arbitrary exit locks. Withdrawals are not dependent on other investors’ actions, ensuring fairness and clarity.

• Skin in the Game: The Fintech Nation team commits a meaningful portion (5-15%) of every ecosystem fund, aligning their interests fully with investors.

• Strategy and Governance: Fintech Nation co-creates the value proposition, risk management, controls, and governance frameworks for each ecosystem fund, ensuring robust oversight and strategic alignment.

• Synergy: The funds are structured to produce win-win outcomes for both ecosystem partners and investors, fostering long-term collaboration and mutual benefit

  
  

Collaboration with Ecosystem Partners

Fintech Nation operates as a lean team and does not hold a fund manager license. Instead, it acts as an orchestrator and market participant, partnering with licensed fund managers and ecosystem players who share its values and mission. This partnership model allows Fintech Nation to leverage complementary strengths-bringing strategic vision, structuring expertise, and community networks-while partners provide regulatory compliance, fund management, and operational execution.

Each ecosystem fund under Fintech Nation is duly licensed or exempted under the relevant regulatory jurisdictions, ensuring compliance and investor protection

Current Fund Offerings and Strategic Focus

Early-Stage Venture Fund: Fintech Nation Fund (FNF)

• Focuses on early-stage fintech and embedded finance companies in Southeast Asia.

• Typically invests $100K-$250K per company at sub-$10 million valuations.

• Holds minority stakes with no board seats, emphasizing founder-friendly terms.

• Operates as an open-ended permanent capital vehicle with no hard exit dates, supporting long-term growth.

Fintech Nation Angels (FNA)

• Enables a network of founders and operators to co-invest in promising fintech ventures.

• Uses deal-by-deal SPVs with carry-only fees, fostering alignment of interests.

• Provides access to a curated pipeline of fintech startups with strong growth potential.

Venture Debt and Private Credit Funds

• Fintech Nation has executed a $5 million venture debt deal with Sleek, a leading ASEAN corporate secretariat and accounting solutions provider

• Launched a $10 million private credit fund in partnership with Validus, targeting scale-up companies needing growth capital beyond equity rounds

• These debt offerings complement equity investments by providing flexible financing options to fast-growing companies.

Developing Public Fixed Income and Digital Asset Offerings

• Fintech Nation is actively working with ecosystem partners to develop investment products in public fixed income and digital assets.

• These initiatives aim to broaden investor access to diversified asset classes within a trusted and transparent framework

  
  

Strategic Impact and Future Outlook

Fintech Nation’s capital strategy is deeply intertwined with its mission to democratize access, digitize the economy, and deliver meaningful outcomes. By building ecosystem funds that combine early-stage venture, private credit, and emerging asset classes, Fintech Nation:

• Supports fintech founders with patient, founder-friendly capital and operational support.

• Provides investors with diversified, transparent, and aligned investment opportunities.

• Fosters a collaborative ecosystem where capital, expertise, and innovation converge.

• Addresses market gaps created by liquidity squeezes and overvaluation corrections post-2021-22.

• Positions itself as a pioneer and orchestrator in Southeast Asia’s fintech ecosystem development.

As Fintech Nation continues to expand its ecosystem fund offerings and deepen partnerships, it is poised to play a critical role in shaping the future of fintech investment and innovation in the region. Fintech Nation’s capital strategy around ecosystem funds is a carefully crafted approach that balances founder support, investor alignment, regulatory compliance, and ecosystem collaboration. Its innovative fund structures, commitment to transparency, and strategic partnerships enable it to deliver fair outcomes and sustainable growth within Southeast Asia’s dynamic fintech landscape.