Sarah Smith, founder and managing partner of the Sarah Smith Fund, has closed her inaugural $16 million Fund I. Launched in 2022, the fund is a solo general partnership, reflecting Smith's belief in the power of AI to revolutionize early-stage investing.

"I'm stunned by what AI can unlock for firms like mine, solo and next generation," Smith said. "I can't imagine doing venture any other way now. While I believe company building still requires a team effort, I believe early-stage investing is best done solo."

Smith appreciates the ability to make fast decisions without committee approval, and she relies on AI to support her throughout the investment process. "Every day I'm dreaming of more ways to support my founders, combining my experience and network with AI," she said.

One example of the power of AI in her work is a values articulation project Smith led for one of her founders. The project, which previously would have taken 20 hours, was completed in just two to three hours using AI. "When you have an AI-native firm that can deliver 10x value in 1/10 of the time, you can scale up a large portfolio with just one person," Smith said.

Fund I, which hopes to invest in 50 companies, has already backed 17 with an average check size of $250,000. Limited partners include Pear VC, Ulu Ventures, and Verdis Investment Management.

The fund focuses primarily on startups in the Stanford ecosystem, where Smith is an alumna. She cites research by Ilya Strebulaev showing that Stanford has produced more unicorns and exit value than any other university, with 11% of unicorn founders having an association with the institution. "While much of the legacy Sand Hill firms spend most of their time up in SF, 45 minutes north, I'm doubling down on Stanford campus," Smith said.