Top Down Ventures Closes $28 Million Founders Fund I for MSP AI Startups

Top Down Ventures announced in a press release the final close of its Founders Fund I at 28 million US dollars, surpassing its initial 25 million dollar target. The fund, which focuses on early stage software and AI companies serving the Managed Service Provider market, held its first close in October 2024 and completed the final close in April 2026.

Founders Fund I is the first institutional venture fund dedicated exclusively to early stage MSP software and AI firms. It has attracted more than 100 limited partners, including founders, operators, and executives from across the MSP ecosystem. Notable participants include Pax8 founder and chairman John Street, Upward Trajectory Fund, and several private family offices in Canada and the United States.

The fund has already realized its first exit: zofiQ, an agentic AI company for MSPs, was acquired by ConnectWise, returning 5.3 times the initial investment within six months. Another portfolio company completed a Series B round at a 3.5 times markup. Since 2024, Top Down Ventures has invested in 12 portfolio companies.

The firm’s general partners have previously founded and scaled companies such as IT Glue, Fully Managed, N-able, and ScalePad, with prior investments achieving a 12.8 times multiple on invested capital and a 97 percent internal rate of return.