Anthony Georgiades is a General Partner at Innovating Capital, a deep tech venture fund focused on disruptive companies and digital assets. Incubated at Innovating Capital, Anthony is also the co-founder of Pastel Network, a decentralized, AI-enabled layer-1 blockchain that provides developers and users with critical infrastructure tools to elevate their Web3 projects to the next level.
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If you’re in the fintech space, you know for sure that the amount of investments in the industry has followed an inconsistent path in the last few years.
If it boomed around the Covid period, it suddenly fell right after, raising questions about the sometimes blind optimism of the hot-hand fallacy – as was pretty clear in the span of a couple of years, a string of successful investments doesn’t mean that the strategy will succeed forever.
During Covid, technology became, maybe more than ever, a fundamental part of our lives. It helped us go ahead with our routines and overcome the pandemic. Fintechs thrived for the simple reason that they offered a solution to most of the problems we were experiencing.
Once we realized that maybe some companies had thrived in an unusual way, layoffs started, followed by diffidence, and then by a more cautious attitude from investors.
Let’s say that natural selection took over, and only valuable fintechs managed to survive – even amidst a bunch of difficulties.
Only in the last part of 2024 did it seem that investors were taking a different stance – more cautious, yes, but not so diffident. As we at FinTech Weekly previously discussed, fintech IPOs were a clear example of this shift.
This was maybe the result of the perception – for sure also affected by the rise of AI – that technology was here to stay in our daily lives. After all, we acquired different habits after the pandemic.
But this time, tech was seen as something different. We may have finally realized that tech was not only a means to improve our daily experiences through the rise of more tech-driven products, but something that could change businesses at their core. So, it would maybe be more correct to talk about deep tech, and not just tech.
Since we’ve discussed deep tech and its applications in finance, we now want to talk about the topic with someone who breathes investments and tech every day. In short, someone with first-hand experience who would be able to discuss what deep tech means for finance today.
Moreover, since we at FinTech Weekly love technology but focus on people, we chose to talk with one of those investors who have seen the attitude shift along the way.
Anthony Georgiades was that person. With his experience as a VC, founder, and partner of different businesses, we asked him some questions about the current state of deep tech in finance and the role of VCs in deep tech progress.
Enjoy!
R: How do venture capitalists influence the pace of innovation in deep tech in finance?
A: I see firsthand how critical our role is in driving innovation within deep tech finance. We don’t just invest money; we bring expertise and strategic guidance to help startups navigate the intricate maze of financial and regulatory landscapes.
By leveraging our networks, we connect founders with industry partners and customers which enable them to thrive in competitive markets. My focus—and the focus of many in our field—is on transformative technologies like AI, blockchain, and quantum computing. These are not just buzzwords; they have the power to disrupt traditional financial services. When evaluating startups, I always look for certain key milestones: strong leadership teams, scalable business models, significant market potential, and evidence of customer traction. These elements signal that a company has what it takes to succeed.
R: How critical is VC funding for deep tech startups in finance, given their long R&D cycles and high capital needs?
A: Funding is often the lifeline for deep tech startups, and I understand how challenging it can be for these companies to secure the capital they need. Their long R&D cycles and high capital demands make venture funding essential. In recent years, I’ve also seen the rise of early-stage venture debt as a flexible option that helps founders access capital without excessive dilution.
Despite significant progress—investments in deep tech quadrupled to over $60BN from 2016 to 2020—the funding pool still feels inadequate compared to other sectors. To mitigate risk, I focus on companies with high growth potential and work to provide larger investments as they scale. Additionally, bringing technically skilled analysts into your team can be a game-changer, to help your firm evaluate complex technologies with greater confidence.
R: Do you think VCs are driving financial innovation in a way that benefits end users, such as through improved financial inclusion or better services?
A: VC is reshaping the financial ecosystem in profound ways. The startups we back are introducing technologies that disrupt traditional financial services, whether through enterprise platforms, blockchain applications, or AI-driven tools.
One of the most rewarding aspects of my work is seeing how these innovations can potentially enhance the lives of and improve services for end users. Beyond funding, VC fosters a culture of innovation. I actively encourage founders to think big and develop breakthrough ideas, while providing them with the resources they need to scale quickly. Partnerships between startups and established financial institutions are another area where VC is value add. We can help and facilitate the seamless integration of new technologies into the broader financial landscape.
R: How do you anticipate the relationship between VCs and deep tech startups evolving over the next decade?
A: Looking ahead, I’m excited about where VC is headed in deep tech finance. There’s a growing focus on frontier technologies like AI, blockchain, and quantum computing, and I see this as an area where we can make a significant impact.
Sustainability is also becoming a key part of the conversation, with more investments directed toward green technologies and ESG-driven fintech solutions. To support these advancements, I believe the VC ecosystem needs to evolve. Specialized firms with deep technical expertise will become more common, and closer collaboration with academic institutions and public funding bodies will be crucial.
Longer investment horizons are also necessary to accommodate the extended development cycles that deep tech innovations often require.
