Should you become a Micro LP?

Venture capital funds are either getting much bigger or much smaller in today’s market. 

Mega funds may be able to rake in huge management fees, but funds in the $15 million or so range have a lot of advantages. They can get a 10x multiple a lot more easily; they have way more options to get liquidity before an IPO or acquisition; and they have a lot more places to raise money from. 

Small funds have ushered in a new golden era of Micro LPs. People who can invest in funds for the same price that they used to be able to invest as an angel. 

If you’ve got $20,000, $50,000, or even $100,000, how do you know whether it’s a better use of your money to invest in companies as an angel, or jump the food chain and invest in the venture funds who will write the bigger checks. 

Read the full article here: https://govclab.com/2025/09/17/micro-lp-vs-angel/

Some things to consider:

• How much time do you want to spend doing due diligence, legal, and paperwork on each deal? 
• An angel investor could win big, but could also lose everything. Investing in a fund spreads your money across a whole portfolio. If the VC picks a big winner, you won’t own as much. But you’re unlikely to lose everything either.
• Better dealflow: If you are also angel investing, your VCs might surface hot deals you could invest alongside directly.
• Learn about a new space: Investing in a small VC who has deep domain expertise is a great way to slingshot yourself into developing your own deep domain knowledge on a new space and it’s hottest up and coming players