Micro VCs

Micro VCs are a new class of venture capital firms focused on investing small amounts in early-stage startups. Micro VCs typically make initial investments between $50k to $500k in seed or Series A rounds, well below traditional VC firms. Their model is high-volume with more investments at lower dollar amounts compared to normal VCs. Micro VCs embrace lean startup principles and aim to fund promising founders early before valuations and competition heat up. Prominent micro VC firms include Y Combinator, First Round Capital, and Funders Club. They are disrupting the VC industry by reaching founders previously ignored by traditional venture firms focused on later stages. Micro VCs fill a key funding gap and often pass their most promising startups onto bigger VC firms for larger follow-on rounds. The Micro VC model produces more failures but also captures outlier returns from the early high-risk investments that make it big.

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