Recently, I aggregated a list of all the Micro-VC firms I could find.  As I indicated, the number of these type of firms has exploded over the last few years (by note, ~50% of the Micro-VC market was not in existence prior to 2011).

Drilling down a bit into the list, below are some illustrations that provide a more granular view on distribution by geography, fund size, and gender.

Geography 

Not surprising to discover that nearly 50% of Micro-VC’s are Silicon Valley based, although I was a bit surprised to see such little representation in Boston and LA (12.3% of the Micro-VC market).

MicroVC_by_geography

Gender

Much has been written about the gender disparity within the venture capital industry. In Micro-VC, the numbers fairly evenly mirror the broader ecosystem (something that surprised me).  Of the 220 firms I found, 16% included at least one female general partner.  When taking all of the partners at Micro-VC firms into account (many have 2 or more investing partners), the % of female partners within Micro-VC dropped to ~7%.  That said we’ve seen some positive momentum within the segment as female led firms such Forerunner, Cowboy, Illuminate, AlignedVC, 112.VC, Array Ventures, and Allegro Ventures have all raised in the last 12 months (at the time of this writing, a couple of the aforementioned are in midst of an imminent close).

MicroVC_gender_diversity_

Fund size 

Funds $0-$25MM comprised nearly 45% of all Micro-VC funds raised (only most recent vintage was used for this calculation).

Reasons for this are fairly simple from my perspective:

1/ Prevalence of single GP funds

2/ Lower barriers to entry – A large majority of funds <$25MM have limited partner bases that are predominately/fully non-institutional in nature.

3/ Marked increase in freshman funds over the past 24 months

MicroVC_Fund_distribution_by_fund_size

One Response to “Mapping out Micro-VC pt. 2”

  1. Nice followup to your earlier list, Samir. Here are some thoughts from a handful of micro-VCs we interviewed:

    https://www.cbinsights.com/blog/micro-vcs-to-watch/

    Leo Polovets of Susa Ventures said this about the tech financing landscape:

    “Rising seed valuations mean a lot of teams will be in a hard spot if they don’t “hockey stick” very quickly. If you raise your seed round at a $5m valuation then you often have the option to raise a bridge round at $7m-$9m a year later. If you raise your seed at $10m just because you can, then that’s great for you, but if you run into roadblocks it’s going to be next to impossible to raise a bridge round at a higher valuation because expectations for your progress will be much, much higher.”

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