Sarah Smith launches $16M fund, says AI can ‘unlock’ a lot for solo GPs like herself
Sarah Smith, founder and managing companion of the eponymous Sarah Smith Fund, introduced Thursday the ultimate closing of a $16 million Fund I.
Smith launched her eponymous fund in 2022 and is a solo GP. She stated she’s “shocked” by what AI can unlock for companies like hers, solo and subsequent technology. “I can’t think about doing enterprise some other manner now,” she stated. “Whereas I imagine firm constructing nonetheless requires a group effort, I imagine early-stage investing is greatest performed solo.”
She appreciates how she will make quick choices that don’t require committee approval. She’s additionally taken to utilizing AI to assist her all through this journey.
“Each day I’m dreaming of extra methods to help my founders, combining my expertise and community with AI,” she stated.
“For instance, simply final week, I led a values articulation undertaking for certainly one of my founders,” Smith continued. “It took me two to a few hours of time when it beforehand would have taken 20. When you’ve an AI-native agency that may ship 10x worth in 1/10 of the time, you may scale up a big portfolio with only one individual.”
She stated she beforehand had a $3 million rolling fund and spent a yr elevating this Fund I. Fund I hopes to spend money on 50 corporations and has already backed 17, with the typical examine dimension standing at $250,000. Restricted companions embrace Pear VC, Ulu Ventures, and Verdis Funding Administration.
Fund I focuses primarily on startups within the Stanford ecosystem (Smith is an alumnus of the college). She has analysis there, too, to again up her focus.
“It has produced extra unicorns and exit worth than some other college on this planet,” she stated, citing the analysis performed by Ilya Strebulaev that reveals that 11% of unicorn founders have an affiliation with Stanford. “Whereas a lot of the legacy Sand Hill companies spend most of their time up in SF, 45 minutes north, I’m doubling down on Stanford campus.”