PitchBook Analyst Note: Micro-Funding Opportunity

Micro-funds proliferate as everything else in VC gets bigger

One of the biggest trends in VC fundraising has been the rise of the mega-fund, as increasingly large vehicles come to dominate the storyline. US VC funds amassed more than $129 billion last year, and the total came predominantly from a record number of vehicles raising at least $500 million.

Yet micro-funds, meaning those of $50 million or less, have adapted to the changing landscape, setting their own records in 2021 and carving out new opportunities for LPs, firms, and startups to access the venture market like never before. Our latest analyst note tracks the growth of these vehicles and what it might mean for deal sizes, investment strategies, and returns.

Source: PitchBook