Sarah Smith, founder and managing partner of the Sarah Smith Fund, has made history. As a result, she was able to successfully close her inaugural $16 million venture capital fund. Launched in 2022, the fund focuses on investing in early-stage technology companies, particularly those associated with Stanford University, renowned for generating more unicorns and exit value than any other institution worldwide.
Smith, a solo general partner (GP), spent the last year raising capital for Fund I. This fund expects to back 50 total startups. So far, it has already deployed into 17 companies, with a $250,000 average check size. Its limited partners include a wide mix of firms, led by well-known firms like Pear VC, Ulu Ventures and Verdis Investment Management.
Smith is particularly interested in leveraging artificial intelligence as part of her venture capital strategy. This change is part of a larger effort to improve efficiency and deliver more value. She is pretty sure that her AI-native strategy will provide 10x payback. Better yet, it does so in one-tenth the time traditionally required.
“I can’t imagine doing venture any other way now,” Smith stated, reflecting on her commitment to leveraging AI in her investment process.
Smith is placing her fund advantageously on the Stanford campus, 45 minutes north of SF. She noted that many of the larger, legacy firms are still parked on Sand Hill Road in Silicon Valley. Her focus on Stanford provides rare, potent advantages.
“I’m doubling down on Stanford campus,” she remarked.
Her passion for uplifting entrepreneurs is palpable in her approach beyond just the pursue of fundraising. Most recently, she led a values articulation process for one of her founders. To me, this new initiative perfectly crystallized her commitment to nurturing close relationships with her portfolio companies.
“Every day I’m dreaming of more ways to support my founders, combining my experience and network with AI,” Smith added.
Smith certainly has a good start, as he got plenty of experience running an effective rolling fund valued at $3 million. His vision for Fund I is as lofty as it is pragmatic. By focusing on Stanford’s vibrant startup ecosystem and harnessing the power of AI, she aims to create lasting impact within the venture capital landscape.