Seven Stars Launches $40 Million Fund to Support Visionary AI Startups Led by Diverse Founders

Seven Stars, a new venture capital firm dedicated to supporting early-stage artificial intelligence (AI) startups, has launched its inaugural $40 million pre-seed and seed-stage fund, which was oversubscribed in just five weeks. The firm is founded and managed by Steven Lee, a former partner at SV Angel, who brings over nine years of investing experience and a track record of advising hundreds of founders on more than 900 financings, raising over $1.25 billion in capital. Steven Lee, the driving force behind Seven Stars, is particularly passionate about the broader societal impact of AI. While acknowledging the significant benefits AI has already brought to a billion knowledge workers in fields like finance, law, and marketing, Lee is even more enthusiastic about its potential to transform the lives of the remaining eight billion people worldwide. He views AI as a powerful equalizer, capable of empowering individuals and companies to thrive in a rapidly evolving world. Lee’s approach to venture capital is centered on collaborative co-investing. Seven Stars works closely with other VCs and angel investors, leveraging a strong and diverse LP base that includes long-term institutional investors such as university endowments, pension funds, and firms managing capital for endowments, foundations, and insurance companies. This model ensures that founders receive not only financial support but also strategic guidance and resources. One of Seven Stars' unique strengths is its hands-on mentoring and support for founders. The firm offers fundraising coaching, access to a diverse talent pipeline, and a curated advisory network comprising world-class executives, operators, and researchers from leading AI companies like Google, Nubank, Meta, Microsoft, and OpenAI. Lee believes that understanding a founder's personal journey and resilience can often be a key indicator of a startup's potential for success. The inception of SevenStars is deeply personal for Lee. Born to Korean immigrants in Los Angeles' Koreatown, he named the firm after his parents' small clothing business, "Seven Star Fashion." His background as a first-generation Korean-American and the entrepreneurial spirit of his family have shaped his investment philosophy and his connection to founders who share similar narratives of overcoming obstacles and striving for innovation. Industry insiders hail the launch of Seven Stars as a significant move in the AI landscape. Hunter Somerville, Partner at StepStone Group, a leading private markets investment firm, praised Lee’s extensive relationships and trusted reputation, underscoring the firm’s potential to spur further AI-driven disruption. Nate Leung, Partner at Sapphire Partners and co-founder of OpenLP, highlighted Lee's outstanding track record, early signs of potential outperformance, and distinct investment edge. Leung also noted the strong endorsements Seven Stars has received from founders and co-investors, emphasizing Lee's integrity, ambition, and commitment to building meaningful relationships. Gold House, a non-profit organization that empowers and unites Asian Pacific creators and businesses, recognized Lee’s impact in 2024 by naming him one of the most influential Asian Pacific leaders in culture and society. This accolade places him alongside prominent figures such as Nvidia CEO Jensen Huang, Scale AI CEO Alexandr Wang, and Stanford Professor Fei-Fei Li. Lee's involvement with Gold House highlights his dedication to fostering diversity and inclusion in the tech industry. In summary, Seven Stars represents a new and promising venture capital entity in the AI sector, distinguished by its focus on early-stage, impactful AI applications and its founder's unique blend of experience, personal insight, and community engagement. The firm's rapid oversubscription and strong backing from notable investors and industry experts suggest a bright future for this initiative to shape the next wave of AI innovation. Industry Evaluation: The launch of Seven Stars marks a significant milestone in the venture capital space, particularly within the AI sector. Experts in the field view the firm’s collaborative model and founder-led approach as strengths that can differentiate it from competitors. Lee’s background and connections within leading AI companies, combined with his personal narrative and commitment to diversity, position Seven Stars to identify and nurture groundbreaking startups. The firm's impressive start, including its well-regarded LP base and early recognition, suggests it is well-equipped to drive the next phase of AI-driven innovation and disrupt the market positively. Seven Stars is poised to become a key player in the tech venture ecosystem, supporting a new generation of founders with the vision to create lasting impact.