𝐋𝐞𝐭’𝐬 𝐭𝐚𝐥𝐤 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐢𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐭𝐡𝐢𝐧𝐠 𝐢𝐧 𝐕𝐂 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 - 𝐭𝐡𝐞 𝐩𝐞𝐨𝐩𝐥𝐞. In an era where capital is a commodity and deals unfold in a hyper-competitive landscape, the team is the defining factor for success. For a small venture fund, it’s not about resources - 𝐢𝐭’𝐬 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐩𝐞𝐨𝐩𝐥𝐞. We firmly believe that in today’s market, small GP teams can outperform larger players by operating as a tight, elite unit with diverse, complementary skills. Limited Partners, especially large institutions, often hesitate to entrust capital to smaller funds, especially those in their first, second, or third cycles. Yet, we see clear advantages that set small funds apart: 1. 𝐒𝐩𝐞𝐞𝐝 𝐚𝐧𝐝 𝐀𝐠𝐢𝐥𝐢𝐭𝐲. In the fast-paced VC-market, these are critical strengths. Small teams can make decisions rapidly, bypassing months of approvals or never-ending investment committees. This is vital for “hot” deals, where founders prioritize quick decisions and investor alignment. 2. 𝐔𝐧𝐛𝐢𝐚𝐬𝐞𝐝 𝐃𝐞𝐚𝐥 𝐒𝐨𝐮𝐫𝐜𝐢𝐧𝐠. Large platforms often fall into predictable patterns, favouring founders from the same universities, companies, or AI labs. Small funds explore untapped opportunities, seeking the elusive 𝐚𝐥𝐩𝐡𝐚 - the edge that drives venture success. 3. 𝐇𝐚𝐧𝐝𝐬-𝐎𝐧 𝐒𝐮𝐩𝐩𝐨𝐫𝐭. Unlike large funds that rely on standardized operational support, small teams offer tailored, high-impact assistance. From hiring to go-to-market strategies and networking, they act as true partners - often the founder’s first call, not a distant contact buried in an LP’s list. 4. 𝐃𝐫𝐢𝐯𝐞𝐧 𝐛𝐲 𝐂𝐚𝐫𝐫𝐲. Under the traditional 2/20 fee structure, large funds can coast on management fees. Small funds, however, are laser-focused on carried interest, pushing them to work harder, take calculated risks, and minimize errors. 5. 𝐁𝐞𝐭𝐭𝐞𝐫 𝐑𝐞𝐭𝐮𝐫𝐧 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥. The math is straightforward: it’s easier to achieve a 3x return on a $50 million fund than on a $1 billion one. Smaller funds offer LPs a stronger chance at outsized returns. 𝐖𝐡𝐚𝐭 𝐌𝐚𝐤𝐞𝐬 𝐭𝐡𝐞 𝐈𝐝𝐞𝐚𝐥 𝐒𝐦𝐚𝐥𝐥 𝐅𝐮𝐧𝐝 𝐓𝐞𝐚𝐦? The best small fund teams are composed of 𝐯𝐞𝐫𝐬𝐚𝐭𝐢𝐥𝐞 𝐡𝐮𝐬𝐭𝐥𝐞𝐫𝐬. Every member must excel across multiple domains - deal sourcing, portfolio support, and investor relations - with no rigid division of roles. 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐚𝐫𝐞 𝐰𝐡𝐚𝐭 𝐦𝐚𝐭𝐭𝐞𝐫. Above all, team chemistry is the most important factor. In a small fund, there’s no room to hide behind a large organization. The team functions with 𝐮𝐧𝐰𝐚𝐯𝐞𝐫𝐢𝐧𝐠 𝐭𝐫𝐮𝐬𝐭 and synchronized ambition. At freesearch ventures, we’re proud to have built such a team. Each member brings unique strengths, learns from one another, and is united by a shared mission. We’re excited to grow our network of like-minded investors, partners, who share our vision. Andrei Yuranau Valentine Murzinkou Mike Torro