Sarah Smith launches $16M fund, says AI can ‘unlock’ so much for solo GPs like herself

Sarah Smith, the visionary founder and managing partner of the newly established Sarah Smith Fund, has officially closed a $16 million Fund I, a milestone announced on Thursday. Since its inception in 2022, Smith has been pioneering the role of a solo General Partner (GP) and expresses her astonishment at the potential of artificial intelligence to revolutionize the investment landscape for independent firms like hers. "The capabilities of AI are staggering, and I can't envision conducting venture capital any differently now," Smith shared. She emphasized that while building a company typically necessitates teamwork, early-stage investments can thrive under the guidance of a single individual. The agility that comes with being a solo GP allows her to make prompt decisions without the lengthy process of committee discussions. In her journey, Smith has integrated AI tools that significantly enhance her operational efficiency. "Daily, I explore innovative ways to support my founders, merging my expertise and connections with the power of AI," she explained. For instance, she recently spearheaded a values articulation project for one of her founders, reducing the time required from 20 hours to just 2-3 hours. "An AI-driven firm that can deliver tenfold value in a fraction of the time enables me to manage a substantial portfolio as a single operator," she noted. Previously managing a $3 million rolling fund, Smith dedicated a year to secure the capital for Fund I. This new fund aims to invest in 50 promising startups and has already committed to 17, with an average investment of $250,000. Among its limited partners are notable firms such as Pear VC, Ulu Ventures, and Verdis Investment Management. Fund I places a significant emphasis on startups emerging from the Stanford ecosystem, where Smith herself is an alumna. She cites research indicating that Stanford has generated more unicorns and exit value than any other institution worldwide. "According to research by Ilya Strebulaev, 11% of unicorn founders have ties to Stanford, reinforcing my focus on this campus while traditional firms remain anchored in San Francisco, 45 minutes to the north," she concluded.