A love letter to micro funds, the spine and way forward for enterprise capital

Whereas the Sequoias and the Andreessen Horowitzes of the world proceed to swell in measurement, their affect on enterprise capital could also be heading in the wrong way as micro funds enhance their impression on the business.

Whether or not you outline micro funds as beneath $50 million or sub-$25 million, these are really the funds that energy the way forward for the business. They assist enterprise hubs take off, carry experience and specialization to the market, and fill a task within the enterprise capital ecosystem that bigger companies merely can’t.

Additionally they might be credited with getting lots of the massive unicorn and public firms we all know right this moment off the bottom, as a lot of them acquired a few of their first {dollars} from a micro fund: Robinhood (Elefund), Coinbase (Initialized Capital, which was investing out of a $7 million fund on the time) and Flexport (Anorak Ventures).

I’ve written in regards to the rise of micro funds within the U.S. earlier than, however when Sweetwood Ventures reached out to me a month in the past about its new fund-of-funds strategy to again nano — sub-$15 million — funds in Israel, I used to be intrigued. I hadn’t realized that the explosion of micro funds prolonged past the U.S. market, however Sweetwood common companion Amit Kurz instructed me it was one he had been monitoring for a couple of years now.

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