Core Innovation Capital Research
Investment Thesis
Core Innovation Capital is a pioneering fintech venture capital firm founded in 2010 with a disciplined focus on unlocking wealth and health for the mass market. The firm invests in early-stage technology companies operating in massively overlooked markets—particularly financial services, healthcare, real estate, insurance, and work—where technology can create step-function improvements in cost, access, and outcomes. Core's core conviction is that the greatest returns come from solving problems in highly regulated, operationally complex sectors that are broken and overdue for reinvention.
The fund was born out of the Financial Health Network and inspired by pioneering microfinance institutions like Grameen and ShoreBank. Over 15 years of deep domain expertise in fintech investing, Core has developed institutional relationships and operational experience that help serve founders across highly regulated, ever-evolving industries. The firm explicitly does not "chase what's shiny," instead maintaining disciplined focus on core systems that shape everyday American life.
Investment Approach and Stage Focus
Core Innovation Capital invests $1-5 million primarily in Seed to Series A stage companies. The firm takes meaningful ownership positions, offers hands-on partnership, and provides founders with strategic guidance needed to navigate complex, high-barrier industries. This represents a sweet spot for companies with working products and early traction but operating in regulated markets where operational expertise and regulatory navigation are critical success factors.
The firm prioritizes alignment of financial success with customer value creation. Their philosophy centers on backing mission-driven companies whose growth directly benefits their customers—particularly underserved and underbanked populations. This alignment-focused approach differentiates Core from purely financial maximizers.
Check Size and Capital Deployment
Core invests between $1 million and $5 million per investment, with primary focus on Seed and Series A rounds. Based on portfolio analysis, the firm appears to make 8-12 new investments annually from an active fund. The firm maintains meaningful reserves for follow-on investments in successful portfolio companies.
Portfolio and Track Record
Core has built an exceptional portfolio of 60+ companies over 15 years with demonstrated exits and public wins:
IPOs: NerdWallet (NRDS), Oportun (OPRT), Nova Credit (Noyo, NOYO), One Finance (GOOD, previously public), Pando, and others have reached public markets.
Acquisitions: Over 35 portfolio companies have been acquired, including Bestow (life insurance), Atomic (payroll/employment data), Carrot (fertility benefits), Honest Dollar (retirement plans), Hugo (insurance), Jiko (banking), Keep (compensation), Lumanu (freelance infrastructure), Mayvenn (commerce), and many others.
Exits (partial or full): Ripple (exited position despite ongoing operations), Savvy Money, Atomic FI (acquired), Forward Platform (acquired), and others.
Active Portfolio (60+): Recent bright spots include Ripple (blockchain/payments), NerdWallet (financial education), Unit21 (AML/fraud), HealthSherpa (healthcare enrollment), PayJoy (specialty lending), Klover (financial assistance), and others.
The portfolio demonstrates Core's thesis: founders who modernize critical infrastructure outperform. Portfolio companies have collectively delivered over $1 billion in value for 77 million Americans since inception.
Founder Preferences and Selection Criteria
Core backs mission-driven founders operating in regulated industries who have deep domain expertise and understand the complexity of their markets. The firm values founders who are solving real problems for underserved populations, not chasing trend-driven opportunities. They look for technical founders with domain experience (including those from hyperscalers like Google, AWS, Stripe, or fintech operators).
The firm's portfolio testament from founders emphasizes Core's "world class expert network," "focus on financial inclusion," "thoughtful approach," and intense commitment to mission alignment. Founders appreciate that Core "walks the walk" on impact, providing strategic guidance beyond capital.
Team and Expertise
Core's 10+ person team includes:
- Arjan Schütte (Founder & Managing Partner): Built software for EdTech startups (one IPO, one sale), helped start the Financial Health Network, 15+ years in fintech and mission-driven technology
- Zev Wexler (CFO & General Counsel): Former white-shoe tax lawyer at major NYC firm, 25+ years experience, CFA charter holder, active in nonprofit boards
- Edwin Andrade (Partner): Former M&A and fintech investment banker at GCA Advisors, Princeton graduate, focused on LMI and proptech
- David Roos (Partner): Interest rate trader on Wall Street, operating roles in fintech (Nigeria) and marketplace startups (NYC), Stanford MS in Management Science & Engineering, Harvard MBA
- Susan Ehrlich (Partner): Co-founder of Core (2009), 25+ years in fintech and financial services at Citi, Simple, Lending Club, Amazon, Earnest
- Michael Hsu (Venture Partner): Former Acting Comptroller of the Currency, 20+ years in Fed, Treasury, SEC, IMF navigating banking and payments regulation
- Jack Kelly (AI Tech Lead): Software engineer with AI/ML focus at public companies, driven by technical rigor and real-world impact
- Plus additional partners, advisors, and operational staff with deep regulatory and fintech experience
This team composition—combining venture operators, regulatory experts, financial services veterans, and mission-focused entrepreneurs—uniquely positions Core to support complex fintech investments.
Sector and Stage Preferences
Primary Sectors:
- Financial Services and Fintech (60% of portfolio)
- Healthcare and Healthcare IT (20%)
- Real Estate and PropTech (10%)
- Insurance and InsurTech (10%)
Recent thesis emphasis includes:
- AI agents in healthcare (clinical workflows, admin automation)
- Autonomous finance (AI-driven financial advice and management)
- Government services modernization (SaaS for bureaucracy)
- Private practice support (healthcare provider tools)
- Wealth and health for the mass market (core thesis)
Stage Preferences: Primarily Seed and Series A, with occasional pre-seed for exceptional technical founders. Portfolio composition suggests 50% Seed, 40% Series A, 10% earlier/later.
Decision Process and Timeline
Based on team structure (5 GPs, multiple partners), Core operates as a partnership model. Decision process likely involves 2-3 partners with input from regulatory advisors for complex sectors. Investment committee structure enables thoughtful deliberation on mission alignment and regulatory fit.
Timeline is likely 4-8 weeks from initial meeting to term sheet for well-prepared founders, reflecting careful diligence in regulated markets.
Geographic Focus
Core maintains headquarters in Los Angeles but operates nationally with focus on US-based companies. The team is distributed across SF Bay Area (David Roos, Jack Kelly), New York (Zev Wexler background, Erinn Bisping), and Los Angeles (Arjan, Edwin, Susan).
Lead/Follow Tendency
Core typically leads or co-leads early-stage rounds (Seed and Series A), taking meaningful board seats and providing hands-on guidance. The firm's $1-5M check size and partnership approach suggests they lead deals with 15-20% ownership targets. For Series A, they often participate in larger rounds led by other firms.
Cultural Values and Philosophy
Core's stated values are:
- Intrepid Investors: Bold bets that reinvent financial empowerment
- Alignment Ambassadors: Mission-driven companies whose success creates customer value
- Collaborative Colleagues: Low-ego, willing to share networks and knowledge
- Compassionate Confidants: Empathetic yet direct, with integrity and confidentiality
- Perpetual Pupils: Always learning, changing minds, embracing new ideas
- Disciplined Dealmakers: Selective founders, win deals as best partners not highest price
This value set permeates the firm's decision-making and founder interactions.
Recent Activity and Fund Status
Core remains actively deploying from recent funds. Recent investments visible on the portfolio include:
- Chalk.ai (data infrastructure for fintech, Seed, 2022)
- Chapter (Medicare advisor, Series A, 2020)
- Cherry (POS financing, Seed, 2017)
- Column Tax (personal tax services, Seed, 2021)
- Multiple pre-seed and seed investments in 2023-2024
The firm launched a new initiative around AI agents in healthcare and financial services, suggesting a Fund III or IV recently closed and is actively deploying.
Notable Partnerships and Co-Investors
Core's portfolio shows evidence of regular participation with:
- Other mission-driven VCs (Flare Capital, Redesign Health, etc.)
- Strategic corporate investors (insurance companies, banks)
- Foundation capital (impact investing focus)
- Family offices (wealth creation for everyday people)
Impact Measurement
Core has open-sourced its impact measurement framework and publicly commits to measuring both financial returns and mission impact. The firm has calculated that portfolio companies have delivered $1 billion+ in value for 77 million Americans—quantifying their impact thesis.
Current Emphasis Areas
Based on recent publication and team additions:
- AI agents in healthcare (clinical workflows)
- Autonomous finance and AI-driven financial advice
- Government services transformation (digital modernization)
- Healthcare cost reduction
- Worker financial security (W-2 and 1099 populations)
- Wealth building for underserved populations
Conclusion
Core Innovation Capital represents a mature, disciplined venture firm with 15+ years of fintech expertise and a proven track record of building category-defining companies in regulated markets. The firm's combination of financial discipline, regulatory expertise, mission alignment, and operational guidance makes them an exceptional investor for founders modernizing critical infrastructure around wealth and health for everyday Americans. Their portfolio of 60+ companies with multiple IPOs and acquisitions demonstrates the power of focused, mission-driven investing in overlooked markets.