Top Down Ventures Closes $28M MSP Software Founders Fund I

Top Down Ventures announced Tuesday that it has completed the final close of its Founders Fund I at $28 million, surpassing its original $25 million target.

The Vancouver-based venture firm said the fund, which first closed in Oct. 2024 and finalized in April 2026, is the first institutional venture fund dedicated entirely to early-stage MSP software and AI startups.

The fund attracted more than 100 limited partners, according to the company. Many of those backers come directly from the MSP ecosystem, including founders, operators, and executives. Investors also include Pax8, Upward Trajectory Fund, and several family offices in Canada and the United States.

MSP software market draws investor attention

Top Down Ventures says the MSP ecosystem now supports the technology operations of more than 100 million small and medium-sized businesses globally and is expected to approach $1 trillion in annual spending by 2030.

The firm also pointed to findings from its 2025 State of MSP Capital in the Age of AI report, which projects that SMB IT spending will surpass enterprise IT spending for the first time in 2026. 

Top Down said its investment thesis centers on the idea that the MSP sector is shifting from a niche category into a mainstream technology market as AI adoption accelerates.

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zofiQ acquisition gives fund its first exit

The firm says the fund has already produced its first exit. Portfolio company zofiQ, which develops agentic AI tools for MSPs, was acquired by ConnectWise, generating a 5.3x return to the fund within six months of the original investment.

Another unnamed portfolio company recently completed a Series B financing round at a 3.5x markup from Top Down’s original entry valuation, according to the firm.

Since beginning investments in 2024, Top Down says it has backed 12 companies. The company added that, based on early deployment and distribution metrics, the fund is tracking in the top decile of 2024-vintage venture funds, citing Carta’s Q4 2025 VC Fund Performance data.

“We’re proud to have built a fund that reflects the strength and alignment of the MSP ecosystem. Our LP base is not just capital, it’s a flywheel of operators, founders, and industry leaders helping the next generation of MSP software companies scale faster and smarter,” said Joel Abramson, managing partner at Top Down Ventures.

AI-native startups shape Top Down’s thesis

Top Down said much of its strategy has centered on AI-native SaaS startups built specifically around modern AI development tools rather than adding AI features onto older products.

One of those companies is Lexful, which debuted earlier in 2026 at Right of Boom with an AI-powered documentation platform built for MSPs.

“It’s a privilege to have Top Down Ventures as a backer,” CEO Pinar Ormeci told us. “Their expertise in the MSP industry helps us immensely. We can tap into that expertise and their network of leaders and partners as we grow.”

“We’re seeing a fundamentally different caliber of company. These are AI-native businesses built from day one with new tooling, new cost structures, and new expectations around speed and scale,” said Chris Day, founder and chairman of Top Down Ventures.

Firm plans expanded research and investor summit

As the firm moves into the latter half of 2026, it plans to expand its “Outliers” program, which provides industry research and content. 

Top Down will also host its annual Horizons investor summit this Nov. in Scottsdale, Arizona, to showcase its portfolio to the broader investment community.

Reflecting on the current economic climate, Mark Scott, a general partner at Top Down Ventures, emphasized the sector’s importance.

“In one of the most challenging fundraising environments, we are grateful for the support from institutions, family offices, and everyone from the MSP ecosystem who engaged with our vision in defining the new era of AI-first MSP software. We believe there has never been a more important time to invest at the early stage, especially in a category like MSP that remains underappreciated but critical to the global SMB market for managed IT, security and AI,” Scott stated.