Yes, there are dozens of firms that are vertical or niche focused (i.e. Govtech, Urban Innovation, Lemnos, etc). Being a generalist is tough at the Micro-VC level, particularly from the perspective of forming a consistent process of picking companies (and winning the ones you want). Funny thing is that some large firms are still basically an amalgamation of a bunch of small firms(i.e. partners that focus on very different niches that simply co-manage a single pool of capital).