Olaf Sakkers Defies Odds in Venture Capital Amid Emerging-Manager Squeeze

In a year marked by significant challenges for first-time fund managers, Olaf Sakkers is making waves in the venture capital sector with his firm, RedBlue Capital. According to PitchBook data, only 4.5% of U.S. VC fundraising dollars went to first-time funds in 2026, with just 81 such funds closing in the first nine months. This trend indicates that 2026 could be the worst year for emerging managers in a decade. However, Sakkers is determined to defy these odds, having recently held a first close on his second fund, which he aims to grow to at least $50 million.

Founded in 2021, RedBlue Capital began its journey with a modest first fund that raised approximately $5 million in capital commitments by 2023. Sakkers, who has a background in anthropology and a keen interest in technology, particularly autonomous vehicles, has leveraged his unique experiences to build a venture firm focused on the “real economy.” This includes sectors such as robotics, logistics, manufacturing, and energy.

Sakkers’ path to venture capital was unconventional. After studying at Princeton and serving in the Israel Defense Forces, he found himself working with Michael Granoff at Maniv Mobility. This experience laid the groundwork for his future endeavors. Sakkers describes the early days of building a fund as a learning process, where he and Granoff navigated the complexities of venture investing together.

One of the significant hurdles Sakkers faces is attracting institutional limited partners (LPs). These entities, including endowments and pension funds, typically prefer to invest in established brands due to their risk-averse nature. Sakkers notes that their investment strategies are often designed to “avoid getting a zero,” which makes it challenging for first-time managers to gain traction. He likens the situation to founders who become perceived as “inevitable” after previous successes, while new entrants struggle against the “gravity of perception.”

To counter this, Sakkers emphasizes the importance of building trust and demonstrating performance over time. He believes that results will ultimately speak for themselves, even if it takes longer to establish credibility in a competitive market.

RedBlue Capital adopts a unique investment strategy by writing small checks ranging from $50,000 to $100,000. This approach allows the firm to participate in more deals, often joining rounds led by other investors. Sakkers aims to be the last investor in a round, providing practical support to founders, including introductions to lead investors and potential customers. This strategy is designed to overdeliver on the support aspect, which Sakkers believes is often undervalued by founders.

The results of this strategy have been promising. Out of 28 investments made by RedBlue, Sakkers reports that 15 have been marked up, with a net internal rate of return significantly above 50%. While there has been only one exit—a successful acqui-hire—most gains remain unrealized, indicating potential for future growth.

Public records corroborate Sakkers’ claims of success. Notable investments include HappyRobot, which raised $150 million in a Series C round at a $1.2 billion valuation, and Westmag, a company specializing in motors for drones and robots, which secured an $11 million seed round led by Andreessen Horowitz. Additionally, Flai, an AI startup focused on car dealerships, followed up its 2025 seed with a $27 million Series A, showcasing the potential of RedBlue’s portfolio.

Sakkers’ approach to venture capital, characterized by resilience and strategic partnerships, positions him as a noteworthy figure in a challenging landscape. As he continues to build RedBlue Capital, his commitment to supporting innovative companies in the real economy remains steadfast.