In the world of startups, it is not uncommon for talented individuals from successful companies to venture out and start their own businesses. This trend is particularly prominent in the fintech sector in Europe, as alumni from unicorns like Monzo, N26, and Revolut have gone on to found a multitude of new companies. Andrena Ventures, a solo GP fund based in the U.K, aims to support this phenomenon by investing in second-generation startups at the pre-seed and seed stages. The firm recently secured $12 million in funding from various VCs and entrepreneurs.
Andrena Ventures’ general partner, Gideon Valkin, has stated that while the fund will prioritize talent with roots in European and British fintech, it is not limited to the sector. Valkin expects the majority of portfolio companies to focus on other categories, such as AI, climate tech, and B2B enterprise solutions.
Andrena has already made its first investment in Nustom, an AI startup founded by Jonas Templestein, co-founder of Monzo, whom Valkin previously reported to during his time at the company. Although Nustom has not yet publicly launched, it has already received investments from prominent entities such as OpenAI, Balaji Srinivasan, Garry Tan, and Naval Ravikant.
Andrena’s involvement in Nustom’s fundraising round exemplifies the firm’s thesis and strategy. Typically, Andrena will contribute between $100,000 and $400,000 to funding rounds led by other investors. However, Valkin hopes that his network will enable portfolio companies to raise Series A rounds more easily, potentially from Andrena’s limited partners or other investors he is connected to.
The solo GP approach adopted by Andrena enables Valkin to leverage his network and make smaller investments that larger funds may not consider. By doing so, these small investments have the potential to yield significant returns and generate value for the fund. This approach is particularly advantageous for early-stage startups, as larger firms may perceive their investments as too small to make a substantial impact. Valkin himself understands this dynamic, having transitioned from his role at Monzo to becoming an angel investor and seed investor at VC firm Entrée Capital, one of Andrena’s limited partners.
However, managing a solo fund comes with its own set of challenges, not least due to the relatively smaller management fees compared to larger funds. As noted by Rebecca Szkutak, emerging managers have experienced a roller coaster ride similar to that of startups in recent years. Despite this, Valkin remains optimistic and believes that his reduced salary aligns him closer to the founders he works with. This alignment fosters trust and positions Valkin as a trusted partner who has as much at stake as the founders themselves. Additionally, Valkin’s value proposition lies in his ability to leverage his network and operational experience to support founders in raising Series A rounds.
This blend of network connections and operational expertise is not as common in Europe as it is in the U.S., where many local VCs have previous experience launching their own companies. However, the European landscape is evolving, with an increasing number of European entrepreneurs engaging in angel investing, particularly in the fintech sector. This shift is exemplified by one of Andrena’s LPs, Taavet+Sten, an investment vehicle led by Wise co-founder Taavet Hinrikus and Teleport co-founder Sten Tamkivi. Both Hinrikus and Tamkivi are former Skype employees and have recently launched an early-stage venture fund called Plural with two other partners. By choosing to support Valkin, these industry veterans validate his investment thesis.
The choice of the name “Andrena” for the venture fund is fitting. Andrena is a type of bee, and Valkin believes that the concept of pollination best describes his role and what he aims to achieve. Similar to how bees contribute to the cross-pollination of plants, Valkin seeks to facilitate the exchange of knowledge, ideas, and resources between startup founders and investors, ultimately leading to the growth and success of the ecosystem as a whole.
In conclusion, the emergence of second-generation startups led by talent from successful companies is a prominent trend in the European fintech sector. Andrena Ventures, a solo GP fund based in the U.K, aims to support this trend by investing in early-stage startups. By leveraging his network and making smaller investments, Gideon Valkin, the firm’s general partner, seeks to gain access to promising deals that larger funds may overlook. Although managing a solo fund presents unique challenges, Valkin’s reduced salary aligns him closely with the founders he supports, positioning him as a trusted partner. Furthermore, this approach of combining network connections and operational expertise is becoming more prevalent in Europe, as demonstrated by the increasing number of European entrepreneurs engaging in angel investing. Andrena’s investments in promising startups, such as Nustom, reflect its commitment to fostering growth and innovation in the European startup ecosystem. As the name suggests, Andrena Ventures serves as a catalyst for the pollination of ideas, resources, and knowledge, ultimately contributing to the overall success of the ecosystem.
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