12 Micro-Funds You Need to Know

Here’s to the wild ones - solo GPs and micro-funds.

Often operating with target sizes of $10–$20 million and deploying checks ranging from $100,000 to $500,000, seem to mostly invest at the pre-seed and seed stages.

The phenomenon is not confined to the UK but is gaining traction across Europe, perhaps reflecting a shift in how early-stage funding is allocated.

Going it alone

The proliferation of solo GPs reflects the development of the UK’s startup ecosystem, where experienced operators, angel investors, and former venture capitalists are leveraging their expertise to support the next generation of founders.

This trend is a response to a persistent decline in pre-seed funding from the majors, which has narrowed the funnel for startups progressing to Series A and beyond. Solo GPs are uniquely positioned to bridge this gap by deploying swift and contextual capital with minimal bureaucracy, offering the agility that traditional VCs might lack.

These micro-funds also cater to niche markets, such as immigrant founders, community-driven startups, and operator-led ventures. They’re closer to the deal. The ability to invest smaller, yet strategic, sums allows solo GPs to co-invest alongside institutional funds, creating a collaborative model that strengthens the capital ecosystem.

I’m the problem it’s me

Solo GPs embody the ethos of startup founders themselves—resourceful, resilient, and intensely focused on impact. With lean teams, they can make investment decisions rapidly and offer highly personalized support to their portfolio companies. Many, like Maria Rotilu of OpenseedVC, bring firsthand experience as operators, enabling them to provide invaluable insights into scaling teams, navigating product-market fit, and building robust go-to-market strategies.

Despite their strengths, solo GPs face significant challenges. Limited fund sizes translate into constrained management fees, creating financial pressures that only successful carried interest can alleviate. Many solo GPs adopt frugal lifestyles to sustain their funds in the interim. Fundraising in a capital-tight environment post-2023 has added to the strain, with several struggling to meet their targets.

Yet, those that succeed, like Nathan Benaich’s Air Street Capital, demonstrate the outsized returns and ecosystem impact these focused funds can achieve.

Thirteen UK Solo GPs and Micro-Funds to Watch

1. Cocoa Ventures - founded by Carmen Rico and Anthony Danon, Cocoa Ventures deploys $17 million to back pre-seed and seed-stage startups with checks of $150,000–$500,000. The fund avoids leading deals or taking board seats, focusing instead on co-investing and founder support.

2. Rerail - Anthony Danon’s fintech-focused Rerail is a $20 million micro-fund writing $200,000–$500,000 checks. Leveraging Danon’s extensive network, the fund aims to help founders build strong cap tables and open strategic doors.

3. Concept Ventures - the UK’s largest pre-seed fund at £50 million, Concept Ventures supports over 60 startups with investments between £100,000 and £600,000. It emphasizes founder personality and a data-driven approach.

4. Common Magic - Sarah Drinkwater’s Common Magic backs startups with community-driven products, writing £100,000–£150,000 checks. The fund emphasizes narrative-building and community strategy for founders.

5. Firedrop - led by Pietro Invernizzi, Firedrop invests £100,000–£250,000 in European startups. Backed by 150+ angels and operators, its portfolio includes Incident.io and Tern Group.

6. Entropy Industrial - Sam Cash’s Entropy targets critical industries like sustainability and automation, writing $250,000–$1 million checks and leveraging its network to support founders.

7. Anamcara - Focused on B2B companies, Anamcara writes $200,000–$500,000 checks and backs startups in commerce, fintech, and supply chain tech. Its operator network emphasizes hands-on collaboration.

8. Andrena Ventures - Gideon Valkin’s $12 million fund backs the fintech "Mafia," targeting startups founded by alumni of companies like Monzo and Revolut.

9. Araya Ventures - Led by Rupa Popat, Araya raised €9.8 million to invest in health tech, fintech, and climate startups. The fund’s community-powered model blends strategic guidance with capital.

10. No Label Ventures - Founded by Ramzi Rafih, this $11 million fund exclusively backs immigrant founders, providing $150,000–$250,000 per startup and support for visa challenges.

11. OpenseedVC - Maria Rotilu’s $10 million fund supports operator-led startups in Europe and Africa, focusing on commerce, work, and health with ultra-early checks of up to $150,000.

12. Genuine Capital - Backed by Michael Eisenberg, Genuine Capital invests in overlooked B2B opportunities, providing early-stage support to underdeveloped sectors.

Zagging

When it comes to the size of checks and number of deals, solo GPs and micro-funds demonstrate a highly focused approach tailored to early-stage startups. On average, these funds write checks ranging from $100K to $500K, positioning themselves as crucial backers in pre-seed and seed rounds. For example, Common Magic targets investments of £100K-£150K, while Openseed VC caps at $150K. At the higher end, Concept Ventures and Entropy Industrial extend their range up to £850K and $1M, respectively, showing the diversity in their capacity to support founders.

In terms of deal volume, solo GPs and micro-funds aim for an efficient spread to ensure hands-on involvement while maintaining a diversified portfolio. Most funds commit to backing 10-15 startups annually, with a deployment target of around 60 investments over four to five years. The breadth of activity allows them to foster meaningful relationships with founders while addressing early-stage funding gaps. This mix of targeted checks and manageable deal flow exemplifies their strategic balance between impact and scalability.

A shared thread across these funds is their focus on founders with unique positioning - zagging when the majors might zag. Many solo GPs prioritize ultra-early-stage investments, addressing gaps left by traditional VCs. Diversity is another defining feature, with funds like No Label Ventures and OpenseedVC actively backing underrepresented founders. The importance of community and collaboration stands out, with funds leveraging their networks to enhance value beyond capital. Specialization, whether in fintech, sustainability, or B2B SaaS,also seems a key strategy, enabling targeted support and expertise.

Here’s to the wild ones - did I miss any? Let me know.