A Charlotte venture capital firm has earned national recognition for its ongoing investments and support of financial-technology startups.
RevTech Labs Capital's CFV Ventures — a venture capital fund that invests in Series A and seed companies in the fintech and insurance-technology space — was recently named No. 1 for fintech startups by Startup Savant. It landed among 25 venture capital firms that target fintech companies. Startup Savant awarded RevTech Labs's CFV Ventures the top ranking due in part to the firm's dedication to its accelerator program and its leadership training model.
"Because of the accelerator and the connection to the accelerator, we fund a great volume of fintechs and are as active probably as any fintech investor in the country," said Dan Roselli, co-founder of RevTech Labs. "And so I think that is probably what caught their attention."
Startup Savant noted that fintech is one of the fastest-growing industries worldwide. Roselli told CBJ this ranking not only puts RevTech Labs, but also the Charlotte region as a whole, on the national radar. The company's recognition reflects a positive step in the local metro becoming a leading fintech market, according to the Charlotte Regional Business Alliance.
"I won't say that journey is over," Roselli said. "But, I think it can prove to people that fantastic venture work can happen and should happen from Charlotte."
RevTech Labs Capital was co-founded in 2017, following the birth of its startup accelerator program in 2012. Its VC fund seeks to invest in fintech and insurtech startups globally, with a heavy focus on North American companies. The firm's investments range from $200,000 to $400,000. RevTech invests in all companies that participate in its accelerator program and continues that funding for successful alumni. It also invests in companies outside of the accelerator.
Roselli said he and his wife, Sara Roselli, founded the capital fund after their longtime involvement in angel and seed investments. Engaging in venture funding for early-stage companies — which Charlotte had few options for historically — was a part of their next phase, he added.
"If you needed that $5 million check, that was harder to find," Roselli said. "And we think building the venture community in Charlotte over the next decade will allow us to complete the funding ecosystem."
He said many people will travel to cities such as New York or San Francisco when they're in need of capital. However, large ecosystems like those markets can be harder to navigate. Locations like Charlotte or the Triangle should be an option for those seeking funding due to the cities' continued growth in the venture capital space, Roselli said.
"It puts Charlotte on the map with those other cities that this is a place that when you're looking for funding — certainly at least in the fintech and insurtech space — that Charlotte has to be one of the places you go and knock on the door," he added.
Charlotte's startup landscape has evolved substantially over the last decade, Roselli said. Deal flow was previously limited to areas such as New York or Chicago, but those restrictions are beginning to lift. In Charlotte, he said that shift is largely credited to the region's growth as a strong and vibrant ecosystem where people want to move.
"We have enough critical mass that people can see lots of opportunities for themselves here," he said.
RevTech Labs now aims to invest in companies outside of the fintech and insurtech industry. Since launching in 2017, the firm has established two capital funds for early-stage companies. It launched a $10 million fund in early 2019 and a $50 million fund last year.
