Core Innovation Capital

Core Innovation Capital Research Investment Thesis Core Innovation Capital is a pioneering early-stage fintech and healthtech venture capital firm founded in 2009 by Arjan Schütte in Los Angeles. The firm invests in technology companies that create step-function improvements in cost, access, and outcomes for the mass market, focusing on what they call the five core systems of American life: financial services, healthcare, real estate, insurance, and work. Core's foundational conviction is that the greatest returns come from the most overlooked markets — heavily regulated, operationally complex industries that are broken and overdue for reinvention. Unlike many VCs that chase trends, Core explicitly avoids "what's shiny" and instead makes disciplined bets on infrastructure and applications that unlock wealth and health for everyday Americans, particularly low-to-middle income (LMI) populations. The firm's mission is to create $1 trillion in new net wealth and cost savings for everyday people. Portfolio companies have collectively delivered over $1 billion in value for more than 77 million Americans since inception. Stage Focus and Check Size Core invests primarily at the Seed and Series A stages, with occasional pre-seed investments for exceptional technical founders: Pre-Seed: Selective, for truly exceptional opportunities Seed: Primary focus — backing teams with early product and traction Series A: Follow-on deals and select new investments Check sizes range from $1 million to $5 million per investment. The firm takes meaningful ownership positions (targeting 15–20% ownership) and offers hands-on partnership as board members or observers. Investment Sectors Primary Sectors: Fintech and financial services (core thesis — ~60% of portfolio) Healthcare and health-tech (~20%) Insurance and insurtech (~10%) Real estate and proptech (~10%) Recent Thesis Emphasis (2025–2026): AI agents in healthcare (clinical workflow automation, cost reduction) Autonomous finance (AI-driven financial advice and management) Government services modernization Worker financial security (earned wage access, financial wellness) Wealth building products for underserved populations Portfolio and Track Record Core has built a portfolio of 64+ active and exited companies over 15 years: Notable Exits: NerdWallet — IPO (NRDS) Oportun — IPO (OPRT) Nova Credit / Noyo — public market journey Atomic — acquired Bestow — acquired (life insurance tech) Carrot — acquired (fertility benefits) Honest Dollar — acquired (retirement plans) Fundera — acquired by NerdWallet SeedFi — acquired Trim — acquired Active Portfolio Highlights: Ripple (blockchain/payments infrastructure) Klover (financial assistance apps) Unit21 (AML/fraud detection) HealthSherpa (healthcare enrollment platform) PayJoy (specialty lending for smartphones) Chapter (Medicare advisory) Brigit (financial assistance) PadSplit (co-living housing marketplace) Kikoff (credit building) Arrived (real estate investment, Nov 2025 investment) Chalk (data infrastructure for fintech) Prism Data (alternative credit data) Column Tax (personal tax services) XP Health (employee vision benefits) Addition Wealth (financial advisory) Ribbon Health (healthcare provider data) Autoblocks (AI infrastructure) Conduit (financial infrastructure) Spinwheel (loan/debt management APIs) 3 Unicorns: Chapter, Assured Allies (insurance tech), and one additional 3 IPOs: NerdWallet, Oportun, and one additional 15+ Acquisitions (as of 2025) Team Core Partners: Arjan Schütte, Founder & Managing Partner — Fintech pioneer, built software for EdTech startups (one IPO, one sale), helped found the Financial Health Network. 15+ years as a fintech-focused VC. LinkedIn: linkedin.com/in/arjanschutte Susan Ehrlich, Partner — Co-founder (2009), 25+ years in fintech at Citi, Simple, Lending Club, Amazon, and Earnest. One of the longest-tenured fintech operators-turned-investor in the market. LinkedIn: linkedin.com/in/susanehrlich David Roos, Partner — Former interest rate trader on Wall Street, then operating roles in fintech (Nigeria) and marketplace startups (NYC). Stanford MS in Management Science & Engineering, Harvard MBA. LinkedIn: linkedin.com/in/david-roos-24632457 Edwin Andrade, Partner — Former M&A and fintech investment banker at GCA Advisors, Princeton graduate. Focused on LMI fintech and proptech. LinkedIn: linkedin.com/in/edwin-loredo-a5a94512a Supporting Partners & Advisors: Zev Wexler, CFO & General Counsel — Former white-shoe tax lawyer, 25+ years experience, CFA charter holder. LinkedIn: linkedin.com/in/zev-wexler-cfa-2b0a63 Adam Shapiro, Regulatory Partner — Deep regulatory expertise for navigating complex financial regulations. LinkedIn: linkedin.com/in/adamgshapiro Michael Hsu, Venture Partner (joined Dec 2025) — Former Acting Comptroller of the Currency with 20+ years at the Federal Reserve, Treasury, SEC, and IMF. Brings unparalleled regulatory relationships and banking/payments expertise. LinkedIn: linkedin.com/in/michael-hsu-992257347 Jack Kelly, AI Tech Lead — Software engineer with AI/ML focus, bridges technical diligence and portfolio support. LinkedIn: linkedin.com/in/jackbrendankelly Kyle Treige, Senior Associate — Rising team member on the investment side. LinkedIn: linkedin.com/in/kyle-treige Alicia Bassuk, Senior Advisor — Leadership and organizational advisor. LinkedIn: linkedin.com/in/aliciabassuk Kat Utecht, Partner Emeritus — Former General Partner, still connected to the firm as emeritus. LinkedIn: linkedin.com/in/kutecht Decision Process Core operates as a partnership model with 4 investing partners (Arjan, Susan, David, Edwin) who collaborate on all deals. The addition of Michael Hsu as Venture Partner and Adam Shapiro as Regulatory Partner enables deep diligence on regulatory dimensions, which is critical to their thesis in complex regulated industries. Decision timeline is typically 4–8 weeks from initial meeting to term sheet. Core emphasizes being the "best partner, not the highest price" — they win deals on the quality of support, expertise, and mission alignment rather than valuation. Warm introductions are generally preferred but not strictly required for exceptional founders. The firm has open communications ( [email protected] ) and evaluates all qualified opportunities. Lead Tendency Core leads or co-leads early-stage rounds (Seed and Series A), typically taking board seats. For larger later-stage rounds, they may participate alongside larger VCs. Their $1–5M check size and hands-on partnership approach indicates a strong lead investor profile at Seed. Geographic Focus Primarily US-focused, headquartered in Los Angeles. The team is distributed across Los Angeles, San Francisco Bay Area, and New York. Geographic focus within the US is national, though the firm has historically invested more in coastal markets. Fund Status and Recent Activity As of April 2026, Core Innovation Capital is actively deploying capital. The most recent tracked investment was in Arrived (real estate investment platform) in November 2025. The firm has 3 new investments in the last 12 months according to public data as of late 2025. The firm appears to be on Fund III or IV given the volume of portfolio companies (79 investments) over 15 years. Each fund has been approximately $100–175M. The addition of key hires like Michael Hsu and Adam Shapiro in late 2025 suggests active fundraising or deployment from a recent fund. Recent publishing and podcast activity by Arjan Schütte in mid-2025 focused on the theme that "50% of the US is paycheck to paycheck" — confirming continued conviction in mass-market financial services. Founder Preferences and What They Look For Core backs mission-driven founders who: Have deep domain expertise in regulated industries (financial services, healthcare) Are solving real problems for underserved or LMI populations Understand regulatory complexity and view it as a moat, not a burden Align financial success with customer value creation (not financial maximization alone) Are technically capable, often with operating experience at fintech scale-ups Core explicitly avoids trend-driven founders and non-mission-aligned companies. Anti-Thesis Core does not invest in: Companies primarily driven by financial maximization without customer value Trend-driven investments without substantive customer benefit Businesses relying on regulatory arbitrage Non-regulated, consumer-trend sectors (gaming, social media, etc.) Crypto/blockchain for speculation (though Ripple is a notable exception from early days) Core Values Intrepid Investors: Bold bets on financial empowerment Alignment Ambassadors: Success-through-customer-value alignment Collaborative Colleagues: Ego-free, network-sharing culture Compassionate Confidants: Empathetic yet direct, integrity-first Perpetual Pupils: Willing to change minds and embrace new ideas Disciplined Dealmakers: Win as best partners, not at highest price Contact and Access Website: https://corevc.com General: [email protected] LinkedIn: linkedin.com/company/core-innovation-capital