As mainstream seed and multi-stage funds become increasingly selective, micro VCs are emerging as crucial enablers for first-time founders. The Blume Venture’s in its recent Indus Valley Report 2025   a rise in the Micro VCs. 

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They're filling the funding gap by taking calculated risks on innovative ideas, providing accessible capital, and offering hands-on guidance to entrepreneurs previously marginalized by larger investment firms.

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Who are Micro VCs?

Micro VCs are nimble investment firms with small corpus funds targeting a large number of early-stage startups to make smaller capital injections. They specialize in backing innovative entrepreneurs who might be overlooked by traditional venture capital. These funds provide critical initial funding, mentorship, and strategic support to nascent businesses with high-potential ideas. 

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They are usually run by founders, ex-venture capitalists, or fund managers who had been working in the fundraising space for years looking out for the next big niche. Usually a Micro VC has a highly evolved investment thesis or a specialised focus on the sector. Sometimes even larger VCs will float smaller Micro VC funds to compete in this space.

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Fund Size Breakdown

Micro VCs operate with compact fund sizes ranging from $10 million to $100 million, significantly smaller than traditional venture capital funds. In India, micro VC funds typically have a fund size ranging from ₹4 crore to ₹8 crore (USD 500k - 1 million)This leaner approach allows for more agile investment strategies, faster decision-making, and a more personalized approach to supporting emerging entrepreneurial ventures. A micro VC takes 5-7 years to exit and usually takes less equity compared to a traditional VC.

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Top Micro VCs in India

Crunchbase says that the number of Micro VCs are on a rise. They are increasing at a remarkable rate of 120%, and around 58% of micro VCs are located in the US. They’d like to put 70% of their funding into seed and early stage start ups.

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India's micro VC landscape is vibrant with more than two dozen pioneering venture capital funds and they are on rise since 2022 since the funding winter. Here are some. 

• Blume Ventures
• 100X.VC
• Venture Catalysts 
• Titan Capital
• Speciale Invest. 

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These investors are reshaping the startup ecosystem by providing targeted investments, strategic support, and creating pathways for innovative entrepreneurs to transform their breakthrough ideas into scalable businesses.

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What Micro VCs Look For in a Pitch Deck

As the fund size is small and operating in whitespaces with high risk - a Micro VC would like to present a close attention to every aspect of your startup in fine details. They’d look beyond financials, focus on the founder team’s grit, innovative approach, capital-efficient business models and a founder’s clear market understanding.

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In essence they look for your story that you envisioned on your fundraising pitch deck. 

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Conclusion: 

Micro VCs are here to stay for a while. They are ready to back fresh ideas that a traditional VC thinks too risky. They reduce the lower entry barriers for the early stage startups, back local innovations, expedite the  investment processes, and deeply personalized support to early-stage startups seeking to disrupt industries.

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