ValueWalk have reported on new data out from Prequin that shows continued growth Micro-VC fundraising. Micro-VC growth has been going on long enough now that I’m hearing LPs question whether we’ve reached saturation point and this segment of the market would benefit from some contraction. Certainly that’s the argument Samir Kaji is making.
However, Samir’s comments are largely based on US data and don’t separate out Europe and Asia. Besides the continued growth the interesting thing for me in the Prequin data was the geographic splits.
This chart shows that compared to the rest of the world Europe has a lower ratio of Micro VC funds to Non-Micro VC funds than the rest of the world, suggesting that unless the US is 2x+ overweight in Micro-VC we can expect substantial growth in the category over here. Anecdotally that feels right to me.
For completeness I’ve also included charts showing the number of funds and the amount of capital raised. The surprising thing for me here is that in most years Asia has seen more Micro VC fundraises than Europe.