Island: 'How Canapi’s unparalleled connections unlocked the banking industry for us'

By Mike Fey

Mike Fey is co-founder and CEO of Island, the enterprise browser that gives businesses control over SaaS governance, visibility, and productivity in a single solution.

When we first met the folks at Canapi, we couldn’t engage with them financially because our funding round was oversubscribed. I figured we’d really connect when the time came for our next fundraise—but instead, Canapi added a ton of value for us, even before an investment was on the table.

We’re a bit different from other Canapi portcos because we serve all kinds of industries with our enterprise browser that addresses key security needs via a single solution. We had a few bank customers, but financial institutions are famously hard to break into.

That’s where Canapi came in. Most investors are field-agnostic, but Canapi is not just focused on banking; it’s led by bankers. They were not only actual bank operators, regulators, and advisors, but many of the people who truly shaped how the modern American banking system works. 

“Canapi connects us with buyers who have the exact problem that we solve. Instead of basic intros, they provide quality leads that have a much greater chance of turning into real business.”

And so the trust and the relationships they have in the banking industry are unparalleled. Right away, pre-investment, Canapi connected us with their Limited Partner base that’s made up of financial institutions—actively advocating for us all the way. Later, when we were really close to finalizing a deal with a big bank but that final signature was languishing, a Canapi partner called the bank CEO directly…and boom, it was done.

Canapi’s approach to investing is so unique: They view the world through the lens of banking, which is a subtle difference with massive impact. With their model, they simply ask, “Is your technology something that will be helpful and innovative for our bank LPs and the financial markets at large?” 

Diverse perspectives give us more chances to win, and that’s exactly what Canapi provides.

Leads, not intros

Canapi invested in Island in 2023 through our Series C, and about a year after their investment, nine of the 10 largest banks are our customers. They’re punching way above their weight class relative to the investment they made. At one point, 10% of our ARR was the direct result of Canapi relationships.

From most firms, we get introductions—“Mike, meet Bob via email; thought you guys should talk”—which is valuable. But Canapi takes it further by connecting us with buyers who have the exact problem that we solve. Instead of basic intros, they provide quality leads that have a much greater chance of turning into real business.

They invest only if they believe you bring value to their LPs. So when they connect you with people, it’s: “This is good for the financial community. This is good for your bank. Your business will be better off if you partner with Island.” So people come to our meetings truly interested and motivated.

“When you’re in with Canapi, it feels like you’re in with the banking community. They’ve built unparalleled trust and relationships within the industry.”

The Canapi team works so hard on our behalf. [Canapi Partner] Neil Underwood and [Principal] Richard Miller personally spoke to several bank CEOs and leaders to talk up Island. The platform team arranged one-on-ones for us, and they advised us on which specific topics we should focus on during these conversations. The Canapi platform team also hosted an hour-long call that introduced us to about 70 of their LP institutions, set up demo days, offered speaking engagements, and a lot more.

When you’re in with Canapi, it feels like you’re in with the banking community. It’s a hard space to break into, but once you do, it’s like you reach a critical mass and you can penetrate the industry. As we continue to verticalize I see Canapi offering a lot of value moving forward. We can leverage their expertise and their LPs’ expertise to build unique solutions for banking specifically, and we're very grateful for that insider take.

Fundraising is a funny thing. Typically you take the money and you hope the value shows up in the partnership. Canapi leaned in early and felt like a partner even before it was official. 

It all goes back to their unique model: They surface innovative tech to their LP banks, and everyone involved benefits. It’s a subtle difference with massive impact, and it means Canapi is as invested in Island’s success as I am.