In the realm of startups, it is quite common to witness talent from established companies embarking on their own entrepreneurial journeys. This trend is particularly noticeable in the fintech sector in Europe, where individuals who were part of successful companies like Monzo, N26, Revolut, and others have been instrumental in launching a multitude of new ventures.
Andrena Ventures, a solo GP fund located in the U.K, aims to fuel this trend of second-generation startups by investing in them at the pre-seed and seed stages. To support this mission, the fund has secured $12 million in funding from various VCs and entrepreneurs.
The fund’s general partner, Gideon Valkin, mentioned to TechCrunch that while Andrena will back talent rooted in European and British fintech, the fund itself is open to all sectors. He foresees most of the portfolio companies focusing on areas like AI, climate tech, and B2B enterprise solutions.
Andrena has already made its initial investment in Nustom, an AI startup founded by Jonas Templestein, a co-founder of Monzo. Valkin, who previously worked at Monzo under Templestein, highlighted that Nustom, despite not being publicly launched yet, has garnered support from prominent investors like OpenAI, Balaji Srinivasan, Garry Tan, Naval Ravikant, among others.
Andrena’s involvement in Nustom’s funding round underscores its investment strategy: typically contributing between $100,000 and $400,000 to rounds led by other investors. Valkin anticipates that his extensive network will facilitate easier Series A fundraising for founders, potentially through his limited partners or other connected investors.
The solo GP approach
By leveraging his network and making relatively modest investments, Valkin aims to access lucrative opportunities that bigger funds may overlook or hesitate to pursue.
Managing a smaller fund means that even minor investments have the potential to yield substantial returns, which might not be significant enough for larger firms to consider. Valkin’s experience as an angel investor post-Monzo and seed investor at VC firm Entrée Capital, now a limited partner of Andrena, has equipped him with insights into this dynamic.
Although managing a solo fund presents challenges, Valkin views his decision to take a substantial pay cut as a strength, as it positions him as a committed partner with shared interests with founders. His value proposition lies in leveraging his network, assisting founders in securing Series A funding, and drawing on his operational expertise.
While this approach is more prevalent in the U.S. than in Europe, the landscape is evolving with European entrepreneurs increasingly engaging in angel investing, particularly within the fintech sector.
One of Andrena’s LPs, Taavet+Sten, led by Wise co-founder Taavet Hinrikus and Teleport co-founder Sten Tamkivi, who are former Skype employees, has recently launched an early-stage venture fund, Plural, along with two other partners.
The endorsement from Taavet+Sten for Valkin’s vision serves as a validation for his thesis. With numerous early fintech professionals seeking their next challenge, the name “Andrena” that Valkin has chosen for his venture aptly reflects his role in the ecosystem – likening it to a bee and the crucial role of pollination in fostering growth.
