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Learn which startups Valar Ventures invests in, what size check sizes they write, and who their partners are (e.g. James Fitzgerald).
Valar Ventures is a venture capital firm backed by Peter Thiel. Valar partners with entrepreneurs globally and believes that an increasing number of transformative technology companies will be started outside of Silicon Valley, and that the founders of those companies will benefit from having a partner that understands their unique challenges andopportunities.
Key people at Valar Ventures.
# Valar Ventures: Global Fintech Specialist Beyond Silicon Valley
Valar Ventures is a New York-based venture capital firm founded in 2010 that has carved out a distinctive niche by focusing on early-stage technology companies operating outside the traditional Silicon Valley ecosystem[1]. The firm's core mission centers on identifying and scaling high-growth fintech and technology startups across Europe, the UK, North America, and emerging markets—regions often overlooked by mainstream venture capital.
The firm's investment philosophy emphasizes concentrated, high-conviction bets on companies pursuing massive market opportunities in financial services and adjacent technology sectors[3]. Rather than chasing trends in saturated markets, Valar targets underserved geographies and nascent fintech verticals where regulatory fragmentation and local market dynamics create both barriers to entry and substantial upside potential. This approach has yielded a portfolio of 172 total investments with notably strong exit performance—the firm commits to exits 32 percentage points more frequently than comparable venture firms[2].
Valar's sectoral focus is heavily weighted toward financial services, fintech, banking, and software, with 101 investments in financial services and 99 in fintech specifically[2]. The firm has become known as the "go-to" investor for non-U.S. fintechs aspiring to achieve global reach, providing not just capital but operational expertise in navigating the complex regulatory and competitive landscapes of multiple jurisdictions[3].
Valar Ventures emerged from Peter Thiel's investment infrastructure when it spun out of Thiel Capital in 2010 as a dedicated venture fund[1]. The founding partnership brought together three complementary skill sets: Peter Thiel, the visionary entrepreneur and investor; Andrew McCormack, a seasoned operator with deep PayPal and international development experience; and James Fitzgerald, who helped establish the firm's analytical rigor[1].
McCormack's background is particularly instructive for understanding Valar's DNA. He joined PayPal in 2001 and worked closely with Thiel in preparing the company for its IPO—an experience that provided intimate knowledge of scaling fintech globally[5]. After PayPal's acquisition by eBay, McCormack helped launch Clarium Capital and even founded a restaurant group, demonstrating entrepreneurial versatility. When he rejoined Thiel at Thiel Capital in 2008, he led international initiatives that would eventually crystallize into Valar's focused strategy[5].
The firm's initial capitalization came through a $100 million first fund structured as special purpose vehicles, including a dedicated $32 million New Zealand-specific fund[1]. This modular approach allowed Valar to build regional expertise while maintaining a global perspective—a structural innovation that reflected the firm's commitment to understanding local market dynamics rather than imposing a one-size-fits-all investment thesis.
Unlike generalist venture firms, Valar has built deep operational networks in specific regions. The firm maintains active presence in Europe (particularly Germany and the UK), Latin America (Brazil and Mexico), and North America[1]. This geographic focus isn't merely about deal flow—it reflects genuine expertise in navigating distinct regulatory environments, banking relationships, and competitive dynamics across jurisdictions. The firm's 2012 investment in Oppa (Brazil) and 2019 investment in Albo (Mexico) demonstrate sustained commitment to emerging markets rather than opportunistic dabbling[1].
Valar's concentration in financial services and fintech has generated outsized returns relative to the broader venture market. The firm's portfolio includes transformative exits like TransferWise (now Wise) and Xero, both early investments from the first fund[1]. More recently, the firm led Series A funding for Petal and Series B for Coya, demonstrating consistent ability to identify fintech winners at inflection points[1]. With 10 documented exits and a follow-on investment index of 0.54, Valar shows disciplined capital deployment and strong conviction in its portfolio companies[2].
Valar operates across a wide range of check sizes—from under $100K to $10M+—and participates in seed through Series B+ rounds[3]. This flexibility allows the firm to lead early-stage rounds where conviction is highest while maintaining optionality to follow strong performers through later stages. The firm's typical investment targets startups valued at $500 million to $1 billion, positioning it as a meaningful growth catalyst rather than a marginal check-writer[2].
Beyond capital, Valar provides portfolio companies with access to Peter Thiel's extensive network, regulatory expertise, and international expansion playbooks. The firm's ability to help fintech startups navigate cross-border expansion—a critical challenge for companies seeking global reach—represents a substantial competitive advantage in a sector where regulatory compliance and banking relationships are existential requirements[3].
Valar Ventures operates at the intersection of two powerful macro trends: the globalization of fintech innovation and the fragmentation of financial services regulation.
For decades, venture capital concentrated in Silicon Valley, creating a geographic monoculture that overlooked exceptional founders and opportunities in other regions. Valar's founding thesis—that great fintech companies could emerge from Berlin, London, São Paulo, or Toronto—proved prescient. The firm rode the wave of regulatory openness to fintech (PSD2 in Europe, open banking initiatives globally) that created genuine opportunities for non-incumbent players to disrupt traditional financial services.
The firm's success has also influenced the broader venture ecosystem by legitimizing geographic diversification. Valar demonstrated that venture returns don't require proximity to Sand Hill Road, challenging the assumption that all great tech companies must be built in California. This has contributed to the rise of regional venture ecosystems and the normalization of distributed investment strategies.
Additionally, Valar's focus on fintech specifically positioned the firm to capture the sector's explosive growth. Financial services represent the largest addressable market for software disruption, and the firm's early specialization—before fintech became a crowded category—allowed it to build defensible expertise and relationships that persist today.
Valar Ventures has successfully executed a focused, thesis-driven strategy in an industry often dominated by generalists chasing hot sectors. The firm's concentration on non-Silicon Valley fintech, combined with genuine operational expertise in navigating international expansion, has created a durable competitive advantage.
Looking forward, several dynamics will shape Valar's trajectory. First, regulatory consolidation in fintech—as jurisdictions worldwide establish clearer frameworks for digital banking, payments, and lending—will favor firms with deep regulatory expertise. Valar's existing relationships and track record navigating fragmented regulatory landscapes position it well to support portfolio companies through this maturation phase.
Second, the emergence of AI-driven financial services will test whether Valar's fintech specialization extends naturally to AI-native financial products or whether the firm risks being disrupted by generalist AI-focused investors. The firm's ability to identify founders building AI-enhanced financial infrastructure (rather than chasing AI hype) will be critical.
Third, emerging market fintech remains underpenetrated relative to developed markets. Valar's early moves into Brazil and Mexico, combined with its operational expertise, position it to capture substantial value as digital financial services penetrate Latin America, Southeast Asia, and Africa—regions where traditional banking infrastructure is weaker and fintech adoption curves steeper.
The firm's 12 closed funds and consistent deal activity (7-12 investment rounds annually) suggest a sustainable, repeatable model[2]. In an industry prone to boom-bust cycles and fashion-driven investing, Valar's disciplined focus on a specific thesis—global fintech outside Silicon Valley—remains a rare and valuable differentiator. The question isn't whether Valar will remain relevant, but whether the firm can scale its model without diluting the operational expertise and regional knowledge that created its edge in the first place.
Key people at Valar Ventures.
