Alumni from successful fintech companies in Europe, such as Monzo, N26, and Revolut, are increasingly starting their own ventures. This trend has caught the attention of Andrena Ventures, a solo GP fund based in the U.K, which aims to invest in second-generation startups at the pre-seed and seed stages. With $12 million raised from various VCs and entrepreneurs, including Taavet Hinrikus and Sten Tamkivi of Wise and Teleport, Andrena is ready to support these emerging companies.
Gideon Valkin, the general partner of Andrena Ventures, believes in being sector agnostic when it comes to investments. While the fund will support talent rooted in European and British fintech, Valkin expects most portfolio companies to focus on categories like AI, climate tech, and B2B enterprise solutions. This broad approach allows Andrena to tap into a diverse range of industries and capitalize on emerging trends.
Andrena has wasted no time in making its first investment. Nustom, an AI startup founded by Jonas Templestein, co-founder of Monzo, has received funding from Andrena. Valkin’s previous professional relationship with Templestein at Monzo played a role in the investment decision. Although Nustom has not yet publicly launched, it has already attracted the attention of prominent investors like OpenAI, Balaji Srinivasan, Garry Tan, and Naval Ravikant.
Andrena’s investment strategy revolves around participating in rounds led by others, typically contributing between $100,000 and $400,000. But Valkin hopes that his extensive network will make it easier for founders to raise Series A rounds. By leveraging his connections and providing operational expertise, Valkin aims to position himself as a trusted partner for founders, aligning his own interests with theirs.
Managing a solo GP fund presents its own set of challenges. As Valkin acknowledges, the management fees are proportionally smaller, and the success of the fund relies heavily on his ability to source and secure deals. However, Valkin sees these challenges as an opportunity to align himself more closely with founders, demonstrating that he has just as much at stake. This approach is more common in the U.S., where angel investing is prevalent among venture capitalists who have previously founded companies. In Europe, this model is gaining traction, especially within the fintech sector.
Andrena’s LPs, Taavet Hinrikus and Sten Tamkivi, have also launched their own venture fund called Plural. Their decision to back Valkin’s fund serves as a validating signal for his investment thesis. With a growing number of early fintech employees seeking their next challenge, Andrena’s name, inspired by the bee species Andrena, represents the idea of pollination. Valkin sees his role as facilitating connections and fostering growth within the startup ecosystem.
In conclusion, Andrena Ventures is capitalizing on the trend of successful fintech alumni starting their own ventures by investing in second-generation startups. With a sector-agnostic approach and a focus on building strong networks, Andrena aims to support founders in raising Series A rounds and scaling their businesses. The validation from prominent investors and the emergence of angel investing in Europe further solidify Andrena’s position in the startup ecosystem.