Cocoa’s Anthony Danon has introduced Rerail, a fintech-focused angel fund aimed at supporting innovative startups in the financial technology sector
There is a new, modest early-stage fund that is seeking investment opportunities if you are establishing a fintech company. Anthony Danon established Rerail, which could be classified as an angel fund, a sole GP fund, or or micro-fund.
Danon has been an investor for the past decade. In 2014, he began his professional journey at Anthemis Group in London and participated in several intriguing rounds, including TrueLayer’s seed round.
With a particular emphasis on fintech, he rapidly advanced the VC ladder to become a partner at Speedinvest. He made investments in ventures that were thought to be promising, including Primer and Wayflyer.
“I appreciate the concept that fintech is horizontal, rather than vertical.” It serves as the foundation of all markets. Therefore, rather than contemplating neobanks, lending, and payments, consider health and insurance, logistics, and trade, as Danon stated in an interview with TechCrunch.
He initiated discussions with Carmen Alfonso Rico in 2021 regarding establishing a joint fund. Danon stated, “Carmen and I were friends because we both entered the venture capital industry at approximately the same time.”
“And we realized that we had observed the same thing as collaborative investors.” One the one hand, all of these VCs are our friends with whom we have developed a close relationship.
The instant we are not competing with them, they are collaborating quite intensely. Conversely, we could capitalize on that for the proprietors.
Cocoa, a small early-stage fund, was established approximately three years ago to invest in a manner similar to that of an angel investor. While Cocoa does not serve as the primary investor, it can facilitate the recruitment of additional investors to assist in the development of a startup.
Upon the conclusion of 35 investments, the duo resolved to disband and establish their own funds. Danon was unsuitable for Cocoa’s investment thesis, as it did not center exclusively on fintech. He desired to concentrate more on fintech and fintech-adjacent businesses, and not just in Europe.
Danon stated, “Our strategy focus was somewhat divergent, and as a result, we made the difficult decision to pursue the subsequent project independently.”
He refrained from providing additional information regarding the future of Carmen Alfonso Rico and Cocoa. “Carmen is currently engaged in her subsequent endeavor,” he stated.
She remains the proprietor of Cocoa, actively investing and expanding the company, according to an individual affiliated with Alfonso Rico, who disclosed to TechCrunch.
And this leads us to Rerail, a fund with a $20 million target. Danon has already completed its initial close at approximately $20.5 million, which is slightly above the target.
The ultimate amount will be slightly higher than that, as he intends to raise a bit more. Danon stated, “The DNA and all of the value I bring to the table are very core to the LP base, which is primarily founders and operators.” “However, I also have some institutions.”
Danon anticipates investing between $200,000 and $500,000, contingent upon the magnitude of the funding round. He has invested in Rerail for the first time, but he is not yet willing to disclose the name of the startup.
Danon aspires to provide valuable advice to founders who are just beginning their ventures, in addition to his capacity to attract investors to the capital table and his network of founders.
“I never assert that I possess a greater understanding than the founders.” He stated, “I acquire knowledge from them; however, they communicate in the same language.” “I am optimistic that we will be able to unlock nearly every door in terms of network and concentration.”
