In a significant development in the venture capital landscape, Michael Gilroy, former head of fintech investments at Coatue, and Gokul Rajaram, a veteran tech executive and prolific angel investor, are forming a new venture firm. According to a Bloomberg report, the yet-to-be-named firm plans to begin fundraising for a debut fund of $400 million to $500 million early next year, with a focus on investing in U.S.-based early-stage fintech and software startups.

Gilroy's experience in fintech investments is substantial, having invested in companies such as Arta Finance, Melio Solution, Pinwheel, and Mercury during his tenure at Coatue. Prior to joining the hedge fund in 2019, he spent over five years as a partner at Canaan. Rajaram, on the other hand, has an impressive track record as an angel investor, having backed over 285 startups, including companies where he serves as a board member, such as Coinbase, Pinterest, and Trade Desk.

This new venture firm is not the only one emerging from the Coatue ecosystem. According to a report by The Wall Street Journal, Kris Fredrickson, an investor with Coatue's growth team, is also planning to launch his own firm, Verified Capital, with a target debut fund of around $150 million. Fredrickson left Coatue in 2022, and during his time at the hedge fund, he was the lead partner in investments in Chainalysis, Instacart, and Root Insurance.

The formation of these new venture firms highlights the growing trend of experienced investors spinning out of established firms to create their own investment vehicles. This trend is driven by the desire to pursue more focused investment strategies, often with a narrower sector or geographic focus. In this case, Gilroy and Rajaram's firm will concentrate on early-stage fintech and software startups in the United States.

The debut fund of $400-500 million is a significant amount, indicating the confidence of the founders in their investment thesis and the potential of the startups they plan to back. The fund's focus on early-stage companies also suggests that the firm will be taking a long-term view, providing capital and guidance to entrepreneurs in the fintech and software sectors.

The emergence of this new venture firm, as well as Verified Capital, is likely to have a ripple effect in the venture capital ecosystem. It will be interesting to observe how these new firms evolve and the impact they have on the startup landscape in the United States.

In conclusion, the formation of Gilroy and Rajaram's new venture firm marks an exciting development in the fintech and venture capital spaces. With their combined experience and expertise, the firm is well-positioned to identify and support innovative startups in the United States. As the venture capital landscape continues to evolve, it will be essential to monitor the progress of this new firm and its peers.