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