This trend could be helpful in cash-poor Ottawa where we already start seeing micro-funds such as Lionica, Mistral, and others ‘under construction’.
With the massive drop in cost to start a tech company, combined with successful VCs raising larger funds requiring bigger investments, there opened up an opportunity in the market for super angel / VC seed funds. In Atlanta alone we’ve seen several new funds within the past 12 months in the $10 million – $20 million range including Mosley Ventures, BIP Early Stage Fund, and Forté Ventures.
Here are a few characteristics of the $10 million VC seed fund:
- Sole general partner that makes the decisions and runs the fund
- Ability to move faster than both angels and traditional VCs since they have committed capital and don’t have a consensus decision making process
- Invests $200k – $500k and can go up to $2 million
- Example investment strategy might be 10 $400k investments ($4 million) and six $1 million follow-on investments (it’ll likely be more nuanced with varying levels of…
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