Sarah Smith Starts $16 Million Fund, Believes AI Can ‘Unlock’ Unlimited Solo GP Potential
A New Era for Solo GPs
In a telling sign of the times for the venture capital market, Sarah Smith is officially hanging her own shingle and announcing the close of her new $16 million venture fund, targeting startup investments ranging from pre-seed to eight-figures.
Focused on tapping into AI for solo General Partners (GPs) like herself, Smith has designed the fund to reflect the evolution underway in modern investing.
Sarah Smith is not new to the venture capital world. A former general partner at Bain Capital Ventures and early employee at both Quora and Facebook, Smith has long been regarded as one of the savviest investors in the Valley.
Now, she is going full-fledged into the solo GP model—an increasingly popular framework where one person handles the entire investment operation.
“The business is changing,” Smith said in an exclusive interview.
“More people are beginning to realize that you don’t need a big team or high-powered firm supporting you to find and back great founders. What matters is access, insight and, now, AI.”
Her fund focuses on pre-seed and seed-stage investments, particularly in four key technology areas:
- SaaS
- Productivity
- Infrastructure
- Artificial Intelligence (AI)
But for Smith, it’s about more than sector targeting—it’s about reimagining venture capital for those forging their own path.
AI as a Force Multiplier
What differentiates this fund is Smith’s strong belief that AI can be a game changer for solo GPs.
She sees AI playing a critical role in:
- Sourcing deals
- Conducting due diligence
- Reaching out to founders
- Performing market research
- Supporting portfolio companies
“We’re now at a point where AI tools can do 80% of the heavy lifting,” Smith said.
“Which means I can be faster, more responsive, and more personal with each and every founder I spend time with. The obstacles that traditionally made it difficult for solo GPs to compete with big firms are quickly falling away.”
Smith has actively explored a range of AI tools—both off-the-shelf and custom-built—to make her workflow more efficient. These tools help her:
- Create dynamically updating founder databases
- Automate financial modeling
- Track industry sentiment
- Conduct initial product assessments for technical startups
Despite skepticism among traditionalists in the VC community, Smith isn’t waiting.
“I’m not saying A.I. will replace human judgment. But it absolutely enhances it.
And for someone like me, who wants to move fast and make deep connections, that turbocharge is everything.”
Backed by Industry Heavyweights
Smith’s new fund isn’t just about going solo—it’s also backed by an elite network of venture and tech leaders.
Her limited partners (LPs) include:
- Co-founders and operators from Stripe, Dropbox, Notion, and Airbnb
- Institutional investors such as Accolade Partners and Screendoor
This backing signifies confidence in:
- Smith’s investing acumen
- Her broader vision for the future of venture capital
“The people behind this fund know that the single GP is the future,” Smith said.
“They know that speed, authenticity and trust count for more than hierarchy or logos.”
Screendoor, known for investing in diverse emerging fund managers, continues to support Smith’s work—an endorsement that confirms her approach is not only novel but strategically sound in the long term.
Investing with Empathy
Even with AI as her co-pilot, Smith strongly emphasizes the human element of her investment strategy.
She is especially drawn to:
“High-empathy founders” — technically skilled entrepreneurs grounded in strong values and deeply connected to the people they’re building for.
“I need to support founders who see software as a means of addressing real, long-standing issues,” she said.
“Sometimes that means supporting somebody with a crazy big vision, and sometimes it means supporting somebody quietly building the next billion-dollar infrastructure layer. But in either case, it’s a matter of trust, not traction.”
Being a solo GP allows her to form direct, long-term relationships with founders.
“There’s no handoff. No partner transition. When I write the check, I’m in with you from Day 1 — and you get my full attention.”
Part of a Larger Movement
Smith is part of a growing movement of solo GPs. Over the last five years, this trend has gained momentum thanks to:
- Lightweight fundraising models
- Greater LP interest in niche and specialized funds
- Streamlined fund administration tools
Smith sees AI as the next major unlock in this evolution.
“No-code tools opened up the space for indie app developers, and it’s going to unlock space for indie investors as well,” she said.
“And this is only the start.”
According to PitchBook, solo GPs raised over $1.4 billion globally in 2024—a record-setting number. Analysts anticipate a sharp rise in 2025 and beyond, particularly as:
- Fund sizes remain lean
- Overhead shrinks due to AI automation
A Vision for the Future
Looking ahead, Smith is hopeful—not only for her own fund but for the entire solo GP and AI-assisted investing ecosystem.
“This is not about disturbing venture capital,” she said.
“It’s a question of reforming it so it’s more effective, more humane and more consistent with the founders that we serve.
If and when AI reduces us to this, I’ll be a big supporter.”
With her established track record, strong network, and forward-thinking mindset, Sarah Smith may be writing the playbook for the future of solo venture capital.
As more investors step out on their own, AI is poised to become the first—and most powerful—partner they turn to.
And for Smith, that future is already here.
