NEW YORK, NY / ACCESSWIRE / January 25, 2023 / Micro venture capital (vc) funds are venture funds that focus on investments of small amounts, typically ranging from $500,000 to $10 million. While institutional investors have dominated the venture market in the last few decades, these smaller venture funds actually have several advantages over larger venture funds.Sid Jawahar's micro-fund, SwiftArc, has found success in not being overly institutional. "As a smaller fund we have been able to connect with our entrepreneurs and investors more than a larger fund typically might. We also have been able to adapt and move quicker as the market has changed which is necessary as we enter a recession," shared Jawahar.

As Jawahar mentioned, micro-venture capital funds can be much more nimble and flexible than larger venture funds. With a smaller amount of money available to invest in startups, micro venture capital firms can make riskier investments without worrying about the potential losses. This allows them to make investments that may not be financially viable for bigger venture funds with greater sums at stake. Micro-venture funds have become more attractive to investors and entrepreneurs alike for several reasons.

Entrepreneurs typically complain about larger firms not being hands on with aiding their startups when needed. Micro-venture capital firms often bring a wealth of knowledge and experience to the table when working with startup companies. They understand what it takes to turn a venture into a successful business while being able to provide valuable guidance and insights, helping to ensure that startups are on the right track as they grow their business. Many smaller firms offer portfolio operations services to the companies they have invested in to ensure whenever founders and teams need help they can count on the funds team instead of hiring or outsourcing their needs. "Whenever our portfolio companies run into a problem or need help with their business- they call us first. We take pride of being top of mind for our founders," Jawahar shared.

Micro-venture capital funds often have an advantage in terms of access to resources and networking opportunities. With smaller amounts of money being invested, venture capitalists can more easily connect with founders and other important players in the startup community. This means that micro venture capital firms can offer invaluable assistance in connecting founders with potential customers, investors, partners, and advisors. More entrepreneurs are looking towards micro-venture funds as it represents an attractive option for startups looking for venture funding. The nimbleness of small funds allows them to take risks on projects they believe in while at the same time providing valuable guidance and resources to entrepreneurs.

Micro venture capital (VC) funds are typically smaller in size than larger VC funds As smaller funds have a specialized focus or investment strategy, they are also better suited to invest in early-stage or emerging companies that have smaller funding needs and may not be ready for the larger investments provided by larger VC funds.

Overall these are some advantages for startups looking to raise from micro-funds:

Flexibility: Micro VCs may be more flexible and open to working with startups on custom deal terms, such as offering more hands-on support or taking a smaller equity stake in exchange for a larger role in the company.

Speed: Micro VCs may be able to move more quickly and make decisions faster than larger VCs, which can be beneficial for startups that need funding in a timely manner.

Expertise: Many micro VCs have a specific focus or industry expertise, which can be beneficial for startups looking for guidance in a particular area.

Network: Micro VCs may have a smaller network of investors and industry connections, but this can also be an advantage for startups looking for more targeted introductions and support.

About SwiftArc:

SwiftArc Ventures is an early and growth-stage consumer and consumer health-focused venture capital firm. We're led by a team with over 200 years of experience building, growing, and investing in brands of all sizes, from startups to Fortune 500 companies.

Media Contact:

Business: SwiftArc Ventures
Media Contact: media@swiftarcventures.com

SOURCE: SwiftArc Ventures