Coatue Alumnus & Tech Vet Launch VC Firm: Fintech & Software Focus

Michael Gilroy, a Coatue Management alumnus, and Gokul Rajaram, a tech industry veteran, are set to launch a new venture capital firm, according to sources familiar with the matter. The pair plans to raise $400 million to $500 million for their debut fund, focusing on early-stage investments in fintech and software companies primarily in the US.

Gilroy and Rajaram's backgrounds and experiences have shaped their investment philosophy and target sectors. Gilroy, with his experience at Coatue, brings a data-driven and analytical mindset, while Rajaram's operational expertise and industry insights complement this approach. Their combined experience in venture, growth, thematic, and structured capital strategies enables a well-rounded and informed investment strategy.

The new venture capital firm is expected to prioritize trends and technologies that are reshaping the fintech and software sectors. Two key trends stand out:



1. AI and Machine Learning: The increasing adoption of AI and machine learning in fintech is transforming risk assessment, fraud detection, and customer service. This trend is set to grow, with the global AI in fintech market expected to reach $38.8 billion by 2025, at a CAGR of 23.0% from 2020 to 2025 (MarketsandMarkets).



2. Open Banking and API-driven Innovation: The rise of open banking is enabling third-party developers to access financial data and build innovative services. APIs are increasingly becoming the backbone of financial services, with the global banking APIs market size expected to grow at a CAGR of 16.5% from 2021 to 2028 (Allied Market Research).

Gilroy and Rajaram's new VC firm is expected to focus on early-stage investments in these areas, capitalizing on emerging opportunities in the fintech and software sectors. Their strategic focus aligns with Coatue's broader portfolio, which includes over 200 tech companies, indicating a continued commitment to supporting the tech industry's growth and innovation.

In conclusion, the new venture capital firm founded by Gilroy and Rajaram aims to leverage their extensive experience and expertise to identify and invest in promising early-stage fintech and software companies. Their focus on emerging trends and technologies positions the firm to capitalize on the rapidly growing tech sector, while their alignment with Coatue's broader portfolio demonstrates a commitment to building upon the firm's existing strengths.