The newly launched fund will focus on pre-seed and seed stage startups developing AI applications.
In a major boost for the artificial intelligence startup ecosystem, Seven Stars, a new venture capital firm founded by former SV Angel Partner Steven Lee, has officially launched its $40 million inaugural fund to support early-stage AI startups.
The fund, which was oversubscribed in just five weeks, will focus on pre-seed and seed-stage investments in AI application companies across both the consumer and enterprise sectors.
With AI advancing rapidly and transforming industries from healthcare to finance, this fund arrives at a crucial moment. Seven Stars is positioning itself as a launchpad for the next generation of AI founders, providing them with pre-seed and seed-stage funding, to help build products that aim to empower billions globally—not just the top 10%.
AI for the 90%: Building Enduring Impact
“AI is the equalizer for the 90% poised to transform lives on a global scale,” said Steven Lee, Founder and General Partner of Seven Stars. “It all starts with motivated founders who want to build enduring companies that help individuals and organizations thrive in a rapidly-changing world.”
Lee’s vision reflects a broader movement in AI: while much attention has gone to improving productivity for white-collar professionals, Seven Stars is committed to funding AI startups that serve underrepresented and underserved populations.
This inclusive approach positions Seven Stars as a firm that doesn’t just fund innovation—it funds purpose.
Backed by Experience: A Trusted Voice in Seed-Stage AI Investment
Steven Lee brings an impressive track record to Seven Stars. As a former partner at SV Angel, Lee has worked with hundreds of founders and has helped startups raise over $1.25 billion in capital. His reputation as a deeply trusted advisor and coach sets the tone for Seven Stars’ founder-first approach.
The new fund offers:
- Hands-on fundraising guidance
- Access to a curated advisory network of top-tier executives from companies like OpenAI, Meta, Microsoft, and Google
- A diverse talent pipeline to help scale AI startups quickly and effectively
Seven Stars also embraces a collaborative co-investment model, working alongside other top AI venture capital firms and angel investors to amplify value for founders.
Institutional Confidence: Oversubscribed and Endorsed
The rapid oversubscription of the $40M fund signals strong institutional belief in both Lee’s leadership and the firm’s focus on AI application startups.
Backers include a range of long-term institutional investors, such as a university endowment, a pension fund, and investment firms managing assets for endowments, foundations, and insurance companies.
Notable endorsements include:
“Steven’s extensive relationships and trusted reputation with leading AI companies have positioned Seven Stars to drive the next phase of AI-driven disruption,” said Hunter Somerville, Partner at StepStone Group.
“In our opinion, he brings an outstanding track record, clear early signals of potential outperformance, and what we believe is a distinct investment edge,” added Nate Leung, Partner at Sapphire Partners.
Founder-First Values Rooted in Grit and Storytelling
The story behind the name “Seven Stars” is personal. It comes from Seven Star Fashion, a clothing business run by Lee’s parents in Koreatown, Los Angeles. As a first-generation Korean-American, Lee connects deeply with the grit and ambition that defines many startup journeys.
“When I meet a founder, I’m drawn to their life story, the obstacles they’ve overcome, and what drives them,” Lee explains. “That grit can be the most powerful signal of future success.”
Lee is also a recognized leader in the Asian Pacific entrepreneurial community. He was named one of Gold House’s most impactful leaders in 2024, joining a prestigious list that includes Jensen Huang (Nvidia), Alexandr Wang (Scale AI), and Professor Fei-Fei Li (Stanford University).
Investing in the Future of AI Applications
As AI continues to evolve from foundational models to real-world applications, Seven Stars aims to be the go-to fund for visionary builders who are shaping the future of:
- AI-powered consumer platforms
- Enterprise AI tools for productivity and workflow automation
- Vertical AI applications in healthcare, education, logistics, and beyond
By focusing on AI applications at the seed stage, Seven Stars helps founders get the support they need at the most critical point in their journey—when product, market, and mission are just taking shape.
Why This Matters for Early-Stage AI Founders
Founders need more than capital. They need investors who understand the technology, the market, and the pressure of building something new in a fast-moving ecosystem.
Seven Stars stands out by offering:
- Founder empathy, rooted in Lee’s personal journey
- Deep sector knowledge in AI across consumer and enterprise domains
- A powerful network of mentors, operators, and investors
- A values-driven mission to level the playing field through AI
The rise of AI has created immense opportunity that Lee and Seven Stars is positioned to seize!
