The number of VC funds under $50 million has almost tripled in the past decade, exceeding 1,000 in 2023, with some of the highest-performing funds emerging from this segment.
Smaller funds are quicker, more targeted, and founder-friendly, enabling them to support teams at the idea stage without the pressure to ensure large exits, making them appealing to founders.
Micro funds are attractive to founders due to their early belief, close involvement, and potential for high returns, especially at the pre-seed and seed stages.
Micro funds, offering a more agile and relationship-driven approach to fundraising, play a vital role in supporting underestimated founders, opening doors to opportunities beyond capital.