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General VC Questions

Will micro VCs be here to stay and dominate early stage funding over time?

Asked by:
Community Member
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Jul 24, 2023
Micro VCs have been on the rise, particularly in the last couple of years. Compared to their traditional VC peers, micro VCs are thought to be more nimble, hands-on, and have lower overheads. That said, micro VCs are generally constrained by the lack of name recognition, limited fund size, and sector coverage.

I personally view micro VCs as a positive contributor to the early-stage startup ecosystem, providing much-needed capital to get startups with potential off the ground. Micro VCs are also often seen to direct investment to underrepresented/diverse founders and in sectors where traditional VC funding is harder to access.

Keen to hear the thoughts of the community who have been following the venture capital space for longer on whether micro VCs will continue its growth and popularity to become mainstream with time.
1 answer
Mike Suprovici
Accepted Answer
Jul 24, 2023
The vast majority of brand name enduring VC firms were once 'micro' VCs as well. Sequoia's first fund was $3m. What's different today is that there is a Cambrian expansion of startups globally outside of the traditional hubs. As a result, a lot of new VCs are being founded to meet the demand. Many of these new micro VCs, especially alumni of the VC Lab program, are founding their firms with the correct structure, strategy and principles to become the leading enduring brands in their sector or geography. 

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