First published in the Financial Times.
Venture capital has long been associated with outsized returns and fast-moving startups. But beneath the usual headlines, something more interesting is happening. Increasingly, VC funding is flowing not just into eye-catching consumer apps, but into companies building essential infrastructure - in finance, healthcare, education, and data. And many of these companies are doing more than growing quickly. They’re helping to close structural gaps in access and opportunity.
That dual role - commercial and social - is becoming more visible. At a time when global inequality continues to rise, this evolution is more than welcome. According to the World Inequality Report, the wealthiest 10% now control over 76% of the world’s household wealth. Meanwhile, more than a billion people still don’t have access to basic banking. For many investors, this presents both a moral challenge and a market opportunity.
FinTech, in particular, is leading the way. Once framed mainly as a disruptor of legacy banks, it’s maturing into a sector where fairness, transparency, and inclusion are part of the business model. Some of this has been nudged along by regulation - the UK’s Consumer Duty being one notable example - but much of it is driven by market dynamics. Consumers expect more, and smart startups are responding.
A good case in point is Currensea, an open-banking powered travel debit card that significantly reduces foreign exchange charges for consumers. It’s a straightforward product, but one that addresses a real frustration - the kind of thing traditional banks have profited from quietly for decades. Making foreign spending cheaper might not sound radical, but for travellers on tighter budgets, even small savings can make a genuine difference.
More broadly, this theme of access is shaping how investors think about inclusion. This isn’t about charity - it’s about scale. Businesses that reach underserved users are no longer outliers. They’re leading growth stories. Research by Morgan Stanley suggests that businesses embedded with sustainable goals generate measurable value - 88% now see sustainability as a core long-term value driver, and over 80% quantify returns from related investments, a signal that doing the right thing can also mean doing well.
And the effects ripple outward. As new entrants raise expectations, incumbents adapt. Banks are rolling out new interfaces and services in response to features once pioneered by startups. Aviva’s acquisition of Wealthify, for instance, was not just a play on the future of investing - it was an admission that access matters, and that smaller accounts are still worth serving.
Some startups are also helping users build not just access, but understanding. Financial literacy - often treated as a government or charity project - is becoming a strategic asset. Platforms like Sidekick are making financial education part of the user experience, not an afterthought. The result? More engaged, loyal customers, and fewer expensive mistakes.
This is where ESG comes into play. For years, the “S” in ESG - the social bit - was the hardest to define. But in FinTech, it’s becoming clear. Inclusion, literacy, and resilience are now quantifiable outcomes. And they’re increasingly linked to a company’s success. For many investors, this makes FinTech one of the few areas where ESG is both practical and profitable.
Environmental thinking is entering the mix, too. Take Greenspark, a startup that helps businesses embed sustainability into transactions. A purchase can now automatically trigger actions such as carbon offset, plastic recovery, or beehive creation to support pollinators. It’s the kind of integration that makes climate action part of everyday business, not just an annual report.
Of course, the space isn’t perfect. Not every FinTech is inclusive. Some promote risky trading, obscure fees, or short-term thinking. This is where responsible capital matters. Investors need to ask hard questions about product design, incentives, and impact. The best returns may well come from businesses that grow because they do good - not despite it.
Jurisdictions like Guernsey could have a role to play in supporting this shift. All of the companies above were backed by 1818 Venture Capital, a Guernsey-based investment manager. The regulatory reputation and fund infrastructure on the island make it well placed to host managers looking to align financial performance with broader outcomes. For firms serious about long-term impact, stability and oversight matter.
In the end, VC will always chase growth. That won’t change. But where that growth comes from - and what kind of world it builds along the way - is shifting. Increasingly, the most exciting venture-backed businesses are solving real problems, not just scaling fast. That’s good news. Because if capital is going to shape the future, it’s worth asking: who’s included?
By Ben Lloyd, Partner, 1818 Venture Capital
