The SequoiasThe Andreessen Horowitzes around the globe continue to expand in size. However, their influence over venture capital may be moving in the opposite direction with micro funds increasing their impact on the sector.
These funds are the ones that will power the industry’s future, regardless of whether you consider micro funds to be below $50 million or under $25 million. They help venture hubs take off, bring expertise and specialization to the market, and fill a role in the venture capital ecosystem that larger firms simply can’t.
They can also be credited for helping to launch many large public and unicorn-like companies today. Many of these companies received their first dollars from a microfund: Robinhood (Elefund), Coinbase(Initialized Capital), Flexport (Anorak Ventures), and Flexport.
I’ve written about the rise of micro funds in the U.S. before, but when Sweetwood Ventures reached out to me a month ago about its new fund-of-funds strategy to back nano — sub-$15 million — funds in Israel, I was intrigued. I hadn’t realized that the explosion of micro funds extended beyond the U.S. market, but Sweetwood general partner Amit Kurz told me it was one he had been tracking for a few years now.
