A fledgling fintech startup seeks alternative funding sources from a newly established, early-stage investment fund designed to support its growth. Based on Anthony Danon (as pictured above), he might be referred to as a micro-fund, a solo general partner fund, or an angel fund.
Danon has been an investor for the past decade. He started his career at Anthemis Group in London once more in 2014, working on various notable deals, including TrueLayer’s seed round.
Rising swiftly through the ranks of venture capital, he ultimately became a trusted partner at Speedinvest, specializing in fintech investments. He invested in promising startups, akin to those of Google and Amazon.
Fintech’s true power lies in its ability to transcend traditional boundaries and operate horizontally, rather than being limited by specific financial silos. The underlying foundation of every market’s functioning is its assistance. As an alternative to exploring fintech innovations such as neobanks, lending, and investment platforms, consider the broader implications on society by examining healthcare and insurance, logistics and supply chain management, and e-commerce.
By 2021, he started collaborating with others to initiate a collective fund? Danon stated that he and Carmen had been associates due to their shared experience of entering the venture capital industry around the same time, resulting from their initial connection. As we reflected on our experience, we noticed a striking similarity with collaborative customers. We’ve developed long-standing relationships with all these venture capital firms, having grown up alongside them. When we’re not vying for dominance, our collaborations tend to flourish intensively. Conversely, this dynamic allows us to strategically capitalize on opportunities alongside the founders.
Three years ago, Cocoa launched its third round as an early-stage fund, positioning itself like an angel investor to support startups from inception. While it typically doesn’t lead investments, Cocoa often co-invests with other backers to help fledgling companies gain traction and take their first steps towards growth.
Following 35 investments, as the decision point approached on how to proceed further, the pair opted to halve their strategies and launch distinct funds. Cocoa’s limited scope as a funding thesis meant it didn’t align perfectly with Danon’s interests, which necessitated a laser-like focus on fintech and fintech-adjacent startups, with no geographical limitations to just Europe.
Danon noted that their team’s technique had diverged, saying, “Let’s approach this one by one; it’s a tough decision.” Without elaborating further on Carmen Alfonso Rico’s (and Cocoa’s) prospective plans. “Carmen’s circumstances are well within her control,” he said.
And so we come to Rerail, a fund seeking to raise $20 million. Danon has already achieved a major milestone, exceeding its initial target of around $20.5 million. The increase will exceed expectations, ultimately resulting in an amount slightly higher than initially predicted. “The overwhelming majority of our LP base consists of founders and operators, a group that is deeply ingrained in our company’s DNA and essential to the value I bring to the table,” said Danon. But then I also had some established institutions.
Danon intends to allocate funds ranging from $200,000 to $500,000 based on the scope of the funding round. He secured his initial investment through Rerail, yet he’s hesitant to dub his startup simply “Rerail”.
With Danon’s community of founders and expertise in guiding buyers to the sale process, he also aspires to offer valuable insights to fledgling founders seeking guidance on their entrepreneurial journey?
“I don’t pretend to know more than the founders.” I learned from them, yet they speak in the same tongue,” he said. While staying connected with our community and maintaining a collective focus is crucial.
