Insider Brief
- Seven Stars, founded by former SV Angel partner Steven Lee, has launched a $40 million pre-seed and seed-stage fund focused on early-stage AI startups across consumer and enterprise sectors.
- The fund was oversubscribed within five weeks and is backed by institutional LPs including university endowments, pension funds, and foundations.
- Lee’s approach combines deep founder support, a diverse advisory network from top AI firms, and a personal investment thesis inspired by his Korean-American entrepreneurial roots.
PRESS RELEASE – Seven Stars, a venture capital 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, oversubscribed in just five weeks. Founded and managed by Steven Lee, former Partner at SV Angel, Seven Stars will focus on partnering with early-stage AI startups with a sharp focus on applications across both consumer and enterprise technology.
“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,” said Steven Lee, Founder and General Partner at Seven Stars. “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.”
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. He built Seven Stars to deliver unique value to visionary AI founders, offering hands-on fundraising coaching, access to a diverse talent pipeline, and a thoughtfully-curated advisory network with world-class executives, operators, and researchers with experience from leading AI companies, including Google, Nubank, Meta, Microsoft, and OpenAI.
Seven Stars’ model is focused on co-investing and working collaboratively alongside other VCs and angel investors. The firm’s well-established LP base comprises long-term institutional investors, including a university endowment, pension fund, and firms managing capital on behalf of endowments, foundations and insurance companies, among others.
“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 (NASDAQ: STEP), a global private markets investment firm. “We’re proud to invest in his oversubscribed inaugural fund.”
“Steven exemplifies the core principles we look for when backing a new manager,” said Nate Leung, Partner at Sapphire Partners and co-founder of OpenLP. “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.”
Lee’s investment thesis – and the backstory behind the firm’s name – is deeply rooted in his background as first-generation Korean-American, born in Los Angeles’ Koreatown. His parents’ clothing small business called “Seven Star Fashion” was the influence behind the Seven Stars name – and in practice, Lee resonates with founders with entrepreneurial stories similar to his family’s. As one of the few Korean-descent partners in the VC industry, he’s an active member of Gold House, a non-profit organization that empowers and unites Asian Pacific creators and businesses. In 2024, Gold House named Lee as one of the most impactful Asian Pacific leaders in culture and society alongside Nvidia CEO Jensen Huang, Scale AI CEO Alexandr Wang, and Stanford Professor Fei-Fei Li.
“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,” continued Lee. “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.”
