Seven Stars, a VC firm that partners with founders building the next generation of AI companies, announced the launch of its inaugural $40 million pre-seed and seed-stage fund, which was oversubscribed in just five weeks. Founded and managed by Steven Lee, a former Partner at SV Angel, Seven Stars will partner with early-stage AI startups, focusing sharply on applications across consumer and enterprise technology.
Lee has been investing in seed-stage AI companies since the early days of the AI revolution and has helped founders raise over $1.25 billion in capital. And he built Seven Stars to deliver unique value to visionary AI founders, offering hands-on fundraising coaching, access to a diverse talent pipeline, and an advisory network with executives, operators, and researchers with experience from leading AI companies, including Google, Nubank, Meta, Microsoft, and OpenAI.
Seven Stars’ model focuses on co-investing along with other venture capitalists and angel investors. The firm’s well-established LP base comprises long-term institutional investors, including university endowments, pension funds, and firms managing capital on behalf of endowments, foundations, and insurance companies, among others.
Lee’s investment thesis is deeply rooted in his background as a first-generation Korean-American (born in Los Angeles’ Koreatown). And his parents’ clothing business, called Seven Star Fashion, was the influence behind the Seven Stars name.
As one of the few Korean-descent partners in the venture capital (VC) industry, Lee is an active member of Gold House, a nonprofit organization that empowers and unites Asian Pacific creators and businesses.
KEY QUOTES:
“While AI already benefits one billion knowledge workers across finance, law, and marketing, I’m most excited by AI’s impact on the rest of the world’s eight billion people. AI is the equalizer for the 90%, poised to transform lives on a global scale – and it all starts with motivated founders to build enduring companies that empower individuals and companies to thrive in a rapidly-changing world.”
“When I meet a founder, I’m drawn to their life story, the obstacles they’ve overcome, and what motivates them to build an iconic company. Digging into the real grit of the founder can oftentimes signal the ultimate success of a startup – with the founder at the center of it all.”
Steven Lee, Founder and General Partner at Seven Stars
“Steven’s extensive relationships and trusted reputation with leading AI companies have positioned Seven Stars to drive the next phase of AI-driven disruption. We’re proud to invest in his oversubscribed inaugural fund.”
Hunter Somerville, Partner at StepStone Group
“Steven exemplifies the core principles we look for when backing a new manager. In our opinion, he brings an outstanding track record from a highly respected firm, with clear early signals of potential outperformance and what we believe is a distinct investment edge. His portfolio already includes several category-leading companies in AI applications, and his reputation is backed by strong endorsements from founders and co-investors alike. With strong integrity, ambition, and a deep commitment to building authentic relationships, we’re excited to support Steven as he builds Seven Stars into an enduring firm.”
Nate Leung, Partner at Sapphire Partners and co-founder of OpenLP
