RedBlue Capital Closes First Close of $50M Second Fund Amid Emerging Manager Squeeze
In a market where first-time funds capture only 4.5% of capital, RedBlue scales through small checks and operational discipline.
The US venture capital market is experiencing unprecedented concentration. According to PitchBook data, firms raising their fourth fund or later captured 88.2% of total US VC fundraising dollars in the first three quarters of 2026, while first-time funds secured a mere 4.5%. Only 81 first-time funds closed in the first nine months of the year, making 2026 potentially the worst year for new managers in at least a decade.
Against this backdrop, Olaf Sakkers’ firm, RedBlue Capital, announced the first close of its second fund, targeting a total size of at least $50 million. Sakkers studied anthropology at Princeton and served in the Israel Defense Forces, where he became interested in autonomous vehicles. He joined Maniv Mobility as an early investor before founding RedBlue in 2021 to focus on the 'real economy,' including robotics, logistics, manufacturing, and energy.
RedBlue’s strategy relies on differentiation and operational efficiency. The fund writes small checks of $50,000 to $100,000, typically joining deals led by other investors rather than leading them. This approach allows it to participate in more transactions and provide practical support, such as introductions to lead investors like Andreessen Horowitz. Sakkers notes that institutional limited partners (LPs) have risk models built to 'avoid getting a zero,' favoring established brands and making trust difficult for new managers to earn.
By his account, RedBlue’s first fund, approximately $5 million, has invested in 28 companies, with 15 marked up and a net internal rate of return (IRR) 'significantly above 50%.' However, there has been only one exit—an acqui-hire—meaning most gains remain unrealized paper profits. Public records confirm that HappyRobot, an early RedBlue investment, raised a $150 million Series C at a $1.2 billion valuation in August, and Westmag emerged with an $11 million seed round led by a16z in June.