Search and Destroy Method

A strategy for identifying and investing in companies that replicate successful business models across different markets, particularly in the fintech/neobank space.

Core Investment Strategy

• Identify successful business models (e.g., neobanks)
• Calculate unit economics (customer worth, interchange fees)
• Systematically invest in companies replicating the model in different:
  • Geographies
  • Customer segments
  • Adjacent markets

Example: Neobank Investment Thesis

• Original success case: Nubank in Brazil
  • Grew to $10B valuation
  • Solved underbanking problem
• Key components:
  • Digital-first banking
  • Superior user experience
  • Partnership with traditional banks (e.g., BBVA)
  • Revenue from interchange fees

Implementation Process

• Find successful template (e.g., Brex for startups)
• Calculate potential market size
  • Number of potential customers
  • Average spend per customer
  • Revenue per transaction (e.g., 1.3% interchange fee)
• Search for companies replicating model:
  • Keep (Canada market)
  • Pluto (Middle East market)

Deal Sourcing

• Leverage network relationships
  • Regular check-ins (every 2 weeks)
  • Coffee meetings
• Focus on specific regions
  • India
  • Southeast Asia
• Cold outreach
  • Direct DMs
  • Pitch as believer in the model

Investment Approach

• Aggressive when conviction is high
• Invest in multiple adjacent companies
• Focus on long-term returns
• Build reputation to compound deal flow
• Target $2M deployment per quarter

This approach leverages two key advantages:

1. Long-term orientation
2. Network effects that compound over time