Top 15 Venture Capital Firms Investing in Software

When you're preparing to raise capital for your software startup, knowing which investors focus on your space is critical. Approaching the right venture capital firms—those who understand SaaS, AI, or other tech business models—saves you time and increases your chances of finding a true partner.

To help you identify the right investors, our team at Rho has put together this overview of top software venture capital firms. This guide is designed to give you a quick summary of major VC firms active in the technology sector.

Just raised, or about to? Set up your financial stack with Rho in minutes. We provide business banking, corporate cards, and bill pay—all built for startup teams moving fast.

Which VC Firms in Software Are Right for Your Stage?

Whether you're an early-stage company or preparing for an exit, knowing which investors to approach is key. This overview breaks down which software VC firms invest at each stage, helping you find the right fit.

Pre-seed and Seed VC Firms in Software

Pre-seed and seed rounds are typically the first capital you'll raise to develop your initial product and find market fit. Firms like Work-Bench and Initialized Capital focus on providing that first check, while others such as Freestyle Capital also concentrate on this critical early phase.

Early Stage VC Firms in Software

Early-stage funding, which includes Series A and B rounds, is for startups that have validated their business model and are ready to build out their team and scale operations. For founders at this point, approaching AI-focused venture capital firms like Glasswing Ventures or deep tech investors such as Playground and Draper Associates could be a good match.

Late Stage VC Firms in Software

Late-stage capital is for mature companies looking to accelerate growth, expand into new markets, or prepare for an acquisition or IPO. Technology venture capital firms that operate here include growth-stage specialists like BCV and Elsewhere Partners, along with corporate investors like Cisco.

It's also worth noting that many major VC firms invest across multiple stages, from seed to exit.

To help you find the right fit, we've compiled key information on top VC firms in the software industry. This overview includes details on their investment stages, geographic focus, and what distinguishes each firm for founders.

1. Draper Associates

Draper Associates is an early-stage venture capital firm based in San Mateo, California, that invests in companies aiming to transform their industries. Since its founding in 2015, the firm has built a reputation for backing ambitious projects from their earliest phases.

The firm's portfolio highlights a strong record in fintech and consumer technology, with notable investments in companies like Robinhood and Twitch. They concentrate on seed and early-stage rounds, signaling a preference for founders with bold, category-defining ideas.

This firm may be a good match if you are an early-stage founder with a big vision, particularly in software or financial technology. Their investment history shows an appetite for companies that aim for significant market impact.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Software, FinTech, Financial Services
• Geographical presence: San Mateo, California
• Founded: 2015
• Notable portfolio companies: Robinhood, Twitch, Ping Identity
• Number of investments: Over 400

You can refer to their website here.

2. Thrive Capital

Based in New York, Thrive Capital is an investment firm that builds and invests in internet, software, and technology-enabled companies. They are known for backing businesses from their earliest stages through to later growth rounds.

The firm has a strong track record of investing in category-defining companies, particularly in fintech and AI. An investment analysis highlights their portfolio, which includes major names like Stripe, OpenAI, and Databricks, showing a focus on high-growth technology platforms.

Thrive Capital could be a great partner if you are building a software or technology-enabled business with high-growth potential. Their experience with companies like Robinhood and Nubank suggests they are comfortable with ambitious founders aiming to build large-scale platforms.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Internet, Financial Services, Finance
• Geographical presence: New York, New York
• Founded: 2009
• Notable portfolio companies: Stripe, OpenAI, Robinhood, Nubank, Databricks
• Number of investments: 370

You can refer to their website here.

3. Work-Bench

Work-Bench is a New York-based venture capital firm that invests in enterprise software startups at the seed stage. They are known for their deep focus on the B2B technology sector.

The firm’s portfolio features several high-growth companies, including unicorns like digital identity platform Socure and mental health benefits provider Spring Health. This signals their ability to back companies that achieve significant scale.

This firm may be a good match if you are an early-stage founder building an enterprise software company. Their specific focus on this area suggests they provide relevant support and network access for B2B startups.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: B2B, Enterprise Software, SaaS, Financial Services
• Geographical presence: New York, New York
• Founded: 2013
• Notable portfolio companies: Socure, Spring Health, Dialpad, Cockroach Labs, VTS
• Number of investments: 76
• Number of exits: 15

You can refer to their website here.

4. Amazon Alexa Fund

The Amazon Alexa Fund is a corporate venture capital arm that invests in companies developing new applications for voice technology. With up to $200 million in funding, it supports innovation in AI, consumer electronics, and related software fields.

The fund’s primary focus is on fueling technology that can expand the Alexa ecosystem, as seen in its investments in smart home device makers Ring and Ecobee. This strategic approach suggests they prioritize companies whose products can integrate with or complement Amazon's existing platforms.

This fund could be a good fit if you are building a company in voice technology, AI, or the Internet of Things. Founders whose products have clear applications within the smart home or consumer electronics space may find a strategic partner here.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Voice Technology, Artificial Intelligence (AI), Consumer Electronics, IoT, FinTech
• Geographical presence: Seattle, Washington
• Founded: 2015
• Notable portfolio companies: Ring, Ecobee, Greenlight
• Number of investments: 141
• Number of exits: 23

You can refer to their website here.

5. Playground Global

Playground Global is an early-stage venture capital firm in Palo Alto that supports founders with deep technical and scientific backgrounds. They invest in companies building complex technologies that aim to solve fundamental industry challenges.

The firm concentrates on deep tech, with a portfolio heavy in AI, robotics, and advanced computing. Investments in companies like Agility Robotics, which builds humanoid robots, and MosaicML, an AI platform acquired by Databricks, signal a focus on capital-intensive, research-driven businesses.

This firm could be a strong partner if you are a technical founder working in a complex field like robotics or next-generation hardware. Their investment history shows they are prepared to back companies tackling significant scientific and engineering problems from the ground up.

• Investment stages: Early Stage Venture
• Industries of focus: Artificial Intelligence (AI), Information Technology, Robotics, Software
• Geographical presence: Palo Alto, California
• Founded: 2015
• Notable portfolio companies: Agility Robotics, MosaicML, Nervana, Mangata Networks, Ayar Labs
• Number of investments: 120
• Number of exits: 17

You can refer to their website here.

6. Glasswing Ventures

Glasswing Ventures is an early-stage venture capital firm in Boston that invests in startups applying artificial intelligence and other frontier technologies to enterprise and cybersecurity markets.

The firm concentrates on seed and early-stage rounds, with a clear focus on B2B companies. Their portfolio includes companies like Zylotech, which was acquired by Terminus, and Black Kite, a cyber-risk monitoring platform, highlighting their interest in deep tech solutions for business.

This firm could be a strong partner if you are an early-stage founder building an enterprise or security startup with AI at its core. Their specific focus suggests they provide relevant expertise for these markets.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Artificial Intelligence (AI), Enterprise Software, Security, Quantum Computing
• Geographical presence: Boston, Massachusetts
• Founded: 2016
• Notable portfolio companies: Zylotech, Black Kite, ChaosSearch, Allure Security
• Number of investments: 71

You can refer to their website here.

7. Freestyle Capital

Freestyle Capital is a San Francisco-based venture firm that concentrates on seed-stage technology companies. Founded in 2009, they provide early funding to help founders get their ideas off the ground and find product-market fit.

The firm is distinguished by its track record of backing well-known software companies from their earliest days, including unicorns like Airtable and Intercom. This history indicates a strong focus on product-centric businesses with the potential for significant growth and market leadership.

This firm may be a good match if you are a founder raising a seed round for a technology or software startup. Their portfolio suggests an appetite for ambitious teams building platforms that can achieve widespread adoption.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Information Technology, Finance, Telecommunications
• Geographical presence: San Francisco, California
• Founded: 2009
• Notable portfolio companies: Airtable, Intercom, Patreon, BetterUp, Snapdocs
• Number of investments: 221
• Number of exits: 50

You can refer to their website here.

8. Elsewhere Partners

Elsewhere Partners is a growth-stage investment firm that backs B2B software companies located outside of major tech centers. They provide capital to businesses that are already established and looking to scale.

The firm is known for investing in successful software companies, including identity-security platform SailPoint and IT management company SolarWinds. Their strategy centers on identifying promising B2B software companies in emerging tech cities that are ready for the next phase of growth.

This firm may be a good match if your B2B software company is gaining traction and is based outside of a primary venture capital market. They specialize in providing capital and support to help proven businesses scale operations.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture, Private Equity
• Industries of focus: B2B Software, Information Technology, Internet
• Geographical presence: Austin, Texas; invests in companies outside of traditional venture hubs
• Founded: 2017
• Notable portfolio companies: SailPoint, SolarWinds, Bazaarvoice
• Number of investments: 22

You can refer to their website here.

9. Script Capital

Script Capital is a venture capital firm in San Francisco that provides early-stage funding for internet and software companies. They concentrate on seed and early-stage rounds, helping founders build their initial product and find a market.

A key feature of their portfolio is a strong history of acquisitions by major technology companies, including Zenly (by Snap) and LockerRoom (by Spotify). This, along with their investment in Patreon, shows a focus on product-centric companies with strong consumer or developer appeal.

This firm could be a good fit if you are building a software product with clear integration potential into a larger platform. Founders who see an acquisition by a major tech company as a potential outcome may find them to be a valuable partner.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Software, SaaS, FinTech, Big Data, Internet of Things
• Geographical presence: San Francisco, California
• Founded: 2016
• Notable portfolio companies: Patreon, Zenly (acquired by Snap), Sqreen (acquired by Datadog), LockerRoom (acquired by Spotify)
• Number of investments: 56
• Number of exits: 9

You can refer to their website here.

10. Powerhouse Ventures

Powerhouse Ventures is an Oakland-based firm that invests in seed-stage startups. They focus on companies building software to help decarbonize the global energy and mobility industries.

The firm's portfolio shows a clear commitment to software that supports the clean energy transition. An investment in Raptor Maps, a solar asset management platform, highlights their focus on companies with direct environmental impact.

This firm could be a strong partner if you are a seed-stage founder building a software company in the climate tech space. Their specific focus on decarbonization suggests they offer relevant expertise for startups in the energy and mobility sectors.

• Investment stages: Seed, Early Stage Venture, Convertible Note
• Industries of focus: CleanTech, Renewable Energy, Software, Transportation
• Geographical presence: Oakland, California
• Founded: 2018
• Notable portfolio companies: Raptor Maps, Zenduty (acquired by Freshworks), CropLogic (IPO)
• Number of investments: 47

You can refer to their website here.

11. Blue Cloud Ventures

Blue Cloud Ventures is a Miami-based firm that invests in growth-stage software companies. Since 2012, they have focused on providing capital to businesses that are ready to scale.

The firm has a strong record of backing successful B2B software companies, with portfolio highlights like cybersecurity unicorn Arctic Wolf and DevOps platform CloudBees. Their history of major exits, including NGINX and OneLogin, points to a focus on market-leading technology businesses.

This firm could be a good partner if you are leading a growth-stage B2B software company with a proven business model. Founders in sectors like cybersecurity or enterprise infrastructure may find their experience particularly relevant.

• Investment stages: Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Financial Services, Finance
• Geographical presence: Miami, Florida
• Founded: 2012
• Notable portfolio companies: Arctic Wolf, NGINX, OneLogin, Go1, CloudBees
• Number of investments: 56
• Number of exits: 21

You can refer to their website here.

12. LDV Capital

LDV Capital is a New York-based firm that backs technically-focused teams using AI and computer vision to interpret visual information. They invest from seed to later stages, concentrating on businesses with deep technological foundations.

The firm has a clear focus on companies built around visual data, with a portfolio heavy in computer vision and AI applications. Notable investments include generative-AI platform Synthesia and several high-profile exits like Mapillary, which was acquired by Meta.

This firm could be a strong partner if you are a founder with a deep technical background building a business that analyzes visual data. Their specialized thesis suggests they provide relevant support for companies in AI, computer vision, and machine learning.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Artificial Intelligence (AI), Computer Vision, Machine Learning, Software
• Geographical presence: New York, New York
• Founded: 2012
• Notable portfolio companies: Synthesia, Clarifai, Mapillary (acquired by Meta), Unsplash (acquired by Getty Images)
• Number of investments: 55
• Number of exits: 10

You can refer to their website here.

13. Cisco

Cisco, through its corporate venture arm, invests in companies that align with its core business in networking hardware and enterprise software. As a strategic investor, they support startups that can influence the future of the industries they operate in.

The firm has made a significant commitment to artificial intelligence, launching a $1 billion AI fund to back companies like Cohere, Mistral AI, and Scale AI. This focus on high-profile AI leaders signals a clear priority on enterprise-grade AI and data infrastructure.

This investor may be a good match if you are building an enterprise AI company with technology that could complement Cisco's product ecosystem. Founders with solutions in AI infrastructure or large language models may find a powerful strategic partner here.

• Investor type: Corporate Venture Capital
• Industries of focus: Enterprise Software, AI, Communications Infrastructure, Software
• Geographical presence: San Jose, California
• Founded: 1984
• Notable portfolio companies: Cohere, Mistral AI, Scale AI, Anthropic, VMware
• Number of investments: 229
• Number of exits: 105

You can refer to their website here.

14. Initialized Capital

Initialized Capital is an early-stage venture firm in San Francisco that focuses on providing software engineers and designers with their first seed funding. They aim to be the first check for founders building new companies from the ground up.

The firm is known for making early bets on companies that went on to become household names, including Coinbase, Instacart, and Cruise. This track record suggests a strong ability to identify product-centric teams with massive potential at their earliest stages.

This firm may be a good match if you are a technical founder raising a seed round for a software business. Their history shows they are comfortable backing ambitious ideas that have the potential to define new categories.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Software, Financial Services, FinTech
• Geographical presence: San Francisco, California
• Founded: 2012
• Notable portfolio companies: Coinbase, Instacart, Cruise, Patreon, Opendoor
• Number of investments: Over 500
• Number of exits: Over 100

You can refer to their website here.

15. FUSE

FUSE is a Seattle-based venture capital firm that provides early-stage funding to software companies. Since its start in 2020, the firm has concentrated on backing technology businesses from the seed stage onward.

The firm emphasizes its deep roots in the Pacific Northwest tech scene, highlighting founders from major companies like Icertis and Auth0 as part of its network. This approach suggests they offer access to a community of experienced operators alongside capital investment.

FUSE may be a good match if you are an early-stage software founder, particularly if you are based in the Seattle area. Their model seems well-suited for entrepreneurs who value mentorship from a network of seasoned company builders.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Artificial Intelligence (AI), Machine Learning, Software
• Geographical presence: Seattle, Washington
• Founded: 2020
• Notable portfolio and network companies: Carbon Robotics, Icertis, Auth0, Apptio, Smartsheet
• Number of investments: 47

You can refer to their website here.

What This Tells Us About The VC Scene for Software Companies

This overview of software investors shows a healthy amount of capital available for early-stage companies. Many firms on our list, from specialists like Work-Bench to major players like Initialized Capital, focus on providing that crucial first check. This is encouraging for founders seeking seed or Series A funding. For companies further along, many of these firms also participate in later rounds, offering a continuous source of support as you grow.

Geographically, while major hubs like the Bay Area and New York remain central, the presence of firms in cities like Seattle, Austin, and Miami indicates a broadening of opportunities. You'll also find a variety of investor types, including corporate funds and specialists in fields like AI and climate tech. This diversity means you have a better chance of finding an investor who truly understands your specific market and business model.

Raise Confidently with Rho

Fundraising requires significant time and energy, making a focused list of investors essential. Approaching firms that align with your vision helps you use your resources more effectively.

Once you have secured your funding, the next step is putting that capital to work. Rho can help you set up your financial stack in minutes.

Our platform gives you the tools to manage your finances from day one. We offer business banking, corporate cards, and bill pay designed for growing startups.

FAQs about Venture Capital Firms Focused on Software

Which cities are major hubs for tech venture capital firms?

While Silicon Valley is a major center, other key hubs for technology venture capital include New York, Boston, and Seattle. Firms in these cities often have deep expertise in specific sectors like fintech, enterprise software, and AI.

What is the main focus of SaaS venture capital firms?

SaaS venture capital firms specialize in software-as-a-service business models. They look for companies with strong recurring revenue, high customer retention, and a clear path to scaling their user base and product offerings efficiently.

How do AI-focused venture capital firms evaluate startups?

AI-focused VCs assess the strength of your underlying technology, the quality of your data, and your team's technical expertise. They also look for a clear application of AI that solves a significant business or consumer problem.

What is portfolio management software for venture capital firms?

VCs use portfolio management software to track the financial health and performance of the companies they invest in. These tools help them manage reporting, monitor key metrics, and support their portfolio companies' growth more effectively.

How can I manage my startup’s finances after a funding round?

Once you've secured funding, our platform can help you manage it. Rho provides integrated business banking, corporate cards, and automated bill pay to help you put your new capital to work immediately.