Last week, my colleague Aria Alamalhodaei wrote an exclusive on defense and space tech venture firm Countdown Capital’s plan to shut down. Jai Malik, the founder of Countdown, said in a letter to his LPs that due to how competitive the tech that is industrial is, he could be not confident about smaller endeavor companies’ capability to secure the important stakes in startups they’d need to make beneficial returns.

As Aria penned, the page checks out like a glass that is cold of to the face. While winding down the fund is a move that is mature GPs have a fiduciary task for their LPs, most likely — the headlines does not assist the developing scuttlebutt when you look at the VC globe that many micro funds can’t survive away from a bull marketplace like 2021’s.

But Countdown shutting down is probable a lot more of an isolated occasion than an indication of what’s in the future for small resources this

When year I spoke with Malik back in 2022 about the launch of this fund that is very he stated that Countdown is made to fill a void when you look at the security industry. Their reasoning ended up being that while bigger organizations like Andreessen Horowitz and Lux had been enthusiastic about supporting startups in the Series the stage and soon after, no body desired to compose 1st tiny inspections startups want to get that is going

That’s changed today, and it is surprising that is n’t the absolute level of money it will take getting security startups from the floor; the expense tend to be incomparable to a category like SaaS.

This can also be the reason why Countdown’s fate does not portend cloudy heavens for small resources various other groups. A fund that is micro in the AI space, for example, told me that despite how active AI has gotten over the last year, the increased interest actually hasn’t made a material difference in pricing at the pre-seed stage where their fund invests. So despite the category heating up, a $500,000 check can still net a firm ownership that is meaningful the pre-seed phase, they said.(*)In VC, dimensions does matter (*)