Small teams, massive impact

The era of bespoke VC and capital efficiency is here

Author

Michael Morgenstern
February 04, 2025

Happy Tuesday Brex community,

Venture capital in 2025 has entered a new era. We’re watching nimble funds spin out from the global franchises, driven by frustration with rigid bureaucracy, top-heavy decision structures, and uneven economics. Many partners feel it’s their moment to break away and build something leaner and more focused.

That’s great news for founders. These smaller, more agile funds often trade massive AUM targets for deeper, hands-on engagement with startups. They can also craft fairer economics for the whole team, fueling stronger alignment and sharper expertise. Historically, newer funds frequently deliver outsized returns, so there’s no need to shy away from these breakaways. If anything, they might just be your best bet for real partnership—and for truly moving the needle in today’s market.

Growing together, Michael Morgenstern

  • Brex Hubspot Fuel Carta Dinner in NYC 2/4

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  • Brexfast Club in Miami 2/10

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Ecotone Renewables, a public benefit corporation, is dedicated to driving the future of clean energy through innovative, community-driven solutions that accelerate the global transition to sustainability. By leveraging cutting-edge technologies and scalable models, Ecotone is shaping a greener, more sustainable future. Their patented Zero Emissions Upcycling Systems (ZEUS) transform waste from hospitals, universities, restaurants, corporate cafeterias, and other sources into renewable energy and a nutrient-rich liquid plant fertilizer known as Soil Sauce.

Ambassadors Perspective: Scalable, community-powered models not only drive impressive financial performance but is also set to catalyze the global shift toward a sustainable, circular economy. We are watching Ecotone closely.

Conviction is a new venture firm purpose-built to serve AI-Native, "Software 3.0" companies; they believe they are extremely early in translating powerful AI models into transformative products, partner with the most important companies of tomorrow by deploying checks ranging from $1M to $10M, and are often the first investor in groundbreaking opportunities.

 

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Don’t hesitate to reach out,🦾!