{
  "id": 6279105,
  "title": "Exclusive: Team8 finds institutional money for small venture funds at a post-dot-com low",
  "url": "https://urgent.news/2026/09/08/exclusive-team8-finds-institutional-money-for-small-venture-funds-at",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-08T13:00:07.000Z",
  "source": {
    "name": "SiliconANGLE",
    "slug": "siliconangle",
    "url": "https://siliconangle.com/2026/09/08/exclusive-team8-finds-institutional-money-for-small-venture-funds-at-a-post-dot-com-low/"
  },
  "original_language": "en",
  "account": "Team8, an Israeli venture firm, has published a report revealing that institutional money is increasingly flowing into smaller venture funds, with a 6% allocation towards funds under $50 million, marking the lowest point since the dot-com crash. Aaron Dubin, a partner at Team8, authored the research titled \"The Emerging Manager Paradox,\" drawing from interviews with various stakeholders and industry data. The report highlights that small and first-time funds generally outperform larger, more established managers on a median net internal rate of return in most vintage years between 2000 and 2022, with the gap reaching 15 percentage points in 2008. Despite the higher costs associated with waiting for institutional validation, the report emphasizes that managers who clear these tests are often oversubscribed. The findings suggest that global first-time early-stage funds typically have a median size of around $20 million, with only about one in three raising a second round. About one-third of commitments to a manager's first fund come from institutional investors, with the remainder coming from wealthy individuals, smaller family offices, and allocators with specific mandates. The report outlines three design principles to reduce costs for new venture firms, including standardized back-office, governance, and reporting infrastructure, spreading exposure across several managers and vintages, and warehousing arrangements to generate performance signals sooner.",
  "summary": "Israeli venture firm Team8 today published research on why institutional money is flowing away from the newest venture funds, as global limited partners put 6% of their 2025 commitments into funds smaller than $50 million. That is the lowest reading since the dot-com crash. Small and first-time funds, meanwhile, have a long record of beating […] The post Exclusive: Team8 finds institutional money…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}