California-based Plug and Play, a prominent early-stage investor and global innovation platform, has announced the close of its $50 million Fintech & AI Fund. The fund, backed by nine institutional investors, is the largest industry-themed fund raised by Plug and Play to date and is designed to invest in fintech and artificial intelligence startups worldwide.
The announcement was made during the company’s Silicon Valley June Summit 2025, an event that convened over 200 startups and 75 speakers to discuss the future of enterprise and AI.
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Is there a strategic shift toward long-term value creation
Plug and Play’s new fund reflects a notable evolution in how financial services companies approach innovation. Over the years, many of the firm’s limited partners have participated in pilot programs and collaborative development efforts. These relationships have reinforced trust in Plug and Play’s ability to identify, fund, and scale emerging technologies.
Sandeep Manchanda, Head of Insurance M&A and Partnerships at EXL—one of the fund’s investors—commented, “Plug and Play’s ecosystem has been a valuable source of innovation and market insight. With this fund, we’re taking that engagement even further—partnering earlier and more strategically with the AI-driven technologies shaping the next chapter of insurance and financial services.”
What are the investment criteria and fund structure
Plug and Play’s approach to startup selection for the Fintech & AI Fund is highly targeted. According to Eugenio Gonzalas, Partner at Plug and Play, “We are looking to back technical teams with domain expertise, serial entrepreneurs with a proven track record, and overall companies that can have an unfair advantage in our ecosystem.” The fund is expected to invest in approximately 30 companies operating at the intersection of financial services and artificial intelligence.
While the firm did not disclose the average ticket size per investment, the focus is on supporting startups that can leverage Plug and Play’s extensive global network. “Our fund stands out among others due to the strong platform that we’ve built over the years. We work with 500+ corporations globally and can significantly shorten sales cycles for portfolio companies,” Gonzalas added.
What is the differentiation in a crowded fintech and AI market
The fintech and AI investment landscape has become increasingly competitive, with numerous funds targeting early-stage startups in these sectors. Plug and Play aims to differentiate its fund through its established platform and corporate connections. The company’s network spans more than 550 corporate partners across over 25 industries, providing startups with access to pilot projects, customer acquisition opportunities, and revenue growth channels.
Gonzalas explained, “We foster collaboration by connecting corporations with startups through our extensive network. We focus on aligning both parties’ goals, facilitating direct engagement, and providing access to emerging technologies and industry insights. This ensures that corporations can improve operational efficiency, reduce costs, and explore new products, while startups gain valuable market access and strategic partnerships.”
The role of corporate innovation in Venture Capital
Plug and Play’s model is rooted in fostering collaboration between startups and large corporations. This approach is increasingly relevant as industries face rapid technological change, particularly with the rise of AI. By serving as a bridge between nimble startups and established enterprises, Plug and Play aims to accelerate innovation cycles and create mutual value.
The company’s track record includes more than 300 successful exits and investments in well-known companies such as Dropbox, Guardant Health, Honey, Turing, Lending Club, N26, PayPal, and Rappi. With headquarters in Silicon Valley and a presence in over 60 locations across five continents, Plug and Play has positioned itself as a global connector in the startup ecosystem.
Is there a rise in AI and fintech investment
The intersection of AI and financial services is drawing significant investor attention in 2025. According to CB Insights, global fintech funding reached $140 billion in 2024, with AI-driven solutions accounting for a growing share of new investments. Financial institutions are increasingly seeking AI-powered tools for risk assessment, fraud detection, customer service automation, and regulatory compliance.
Events like Plug and Play’s Silicon Valley June Summit underscore the momentum in this space, with hundreds of startups and industry leaders gathering to showcase new technologies and discuss market trends. The fund’s launch during the Enterprise & AI Expo highlights Plug and Play’s commitment to remaining at the forefront of these developments.
Plug and Play’s broader impact and global reach
Beyond capital, Plug and Play offers portfolio companies access to its corporate innovation programs, venture capital network, and support across multiple industry verticals. The platform’s scale allows it to facilitate introductions, pilot programs, and strategic partnerships that might otherwise be out of reach for early-stage startups.
Plug and Play’s global footprint is a key factor in its value proposition. With operations in 60+ locations, the company is able to source startups from diverse markets and connect them with decision-makers at multinational corporations. This international reach is particularly relevant as fintech and AI startups increasingly seek to scale their solutions across borders.
Lessons from previous funds and future outlook
While Plug and Play did not share specific lessons from its earlier funds, the structure of the Fintech & AI Fund suggests a focus on long-term value creation and deeper engagement with both startups and corporate partners. The fund’s emphasis on supporting companies from early stages through to scale aligns with broader trends in venture capital, where investors are seeking to add value beyond capital.
The company’s experience in running multiple funds and innovation programs has informed its approach to fostering collaboration and accelerating growth. By aligning the interests of startups and corporates and providing a platform for ongoing engagement, Plug and Play aims to drive sustained impact in the fintech and AI sectors.
What we think about the startup and its uniqueness and approach
Plug and Play’s $50 million Fintech & AI Fund stands out in a crowded venture landscape for several reasons. The fund’s scale, global reach, and integration with a broad corporate partner network offer tangible advantages for startups seeking not just capital but also market access and strategic relationships.
The firm’s focus on technical teams with domain expertise and serial entrepreneurs reflects a commitment to backing founders who are well-positioned to navigate the complexities of fintech and AI. By leveraging its established ecosystem, Plug and Play can help startups accelerate sales cycles and gain early traction with large customers—a critical factor for success in these sectors.
Plug and Play’s approach of fostering direct collaboration between startups and corporations is particularly relevant as industries face rapid technological disruption. The company’s ability to align the goals of both parties, facilitate engagement, and provide access to emerging technologies positions it as more than just a source of funding. It acts as a catalyst for innovation, helping both startups and corporates adapt to changing market dynamics.
The fund’s launch during a major industry summit, and its backing by institutional investors, further underscore Plug and Play’s influence in the global innovation ecosystem. As AI continues to reshape financial services, the firm’s platform-based model and focus on long-term value creation are likely to remain highly relevant.
In summary, while many funds are chasing the promise of AI and fintech, Plug and Play’s combination of capital, corporate connections, and operational support gives it a distinctive edge. Its track record and global presence suggest that it will continue to play a significant role in shaping the future of financial technology and artificial intelligence.
