Top 15 Venture Capital Firms Investing in Software
Find the right VC for your software startup. We list 15 active firms. Once funded, our platform helps you manage and deploy your capital efficiently.
Rho Editorial Team
When you're preparing to raise capital for your software company, knowing which investors to approach is critical. Pitching to a venture capital firm that truly understands your specific area—be it SaaS, AI, or another tech niche—can make all the difference. It means spending your time with people who get your business model.
To help you identify the right potential partners, we've curated this guide to some of the top software venture capital firms. This overview gives you a quick summary of technology-focused VCs so you can focus your fundraising efforts. Once funding is secured, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help startups manage and deploy capital efficiently.
Rho provides access to business banking, corporate cards, and bill pay — built for startup teams moving fast.
Key Takeaways
Securing venture funding provides software companies with the capital needed to scale operations, develop their product, and grow their team.
Venture capital firms like Draper Associates, Thrive Capital, Work-Bench, and the Amazon Alexa Fund are notable backers of companies in the software industry.
Once you've secured funding, a financial platform like Rho helps you manage your new capital with integrated business banking, corporate cards, and bill pay.
Which VC Firms in Software Are Right for Your Stage?
Whether your company is in its early stages or preparing for an exit, it helps to know who to approach for funding. Here’s a quick look at software VC firms and the stages at which they typically invest.
Pre-seed and Seed VC Firms in Software
This is often the first institutional money a company raises, intended to help you validate an idea and build a minimum viable product. Software venture capital firms that focus on this stage include Freestyle Capital, Initialized Capital, and Work-Bench.
Early Stage VC Firms in Software
Early-stage funding, which includes Series A and B rounds, is for companies that have found product-market fit and are ready to build out their team and scale customer acquisition. For founders of AI and deep tech companies, firms like Draper Associates, Glasswing Ventures, and Playground are active early-stage software investors.
Late Stage VC Firms in Software
Late-stage capital is for established companies looking to accelerate growth, expand into new markets, or prepare for an exit through an acquisition or IPO. Tech VC firms that provide this kind of growth financing include Elsewhere Partners, BCV, and the corporate venture arm of Cisco.
It's also worth noting that many venture capital firms invest across multiple stages, from seed to growth. Once you secure funding at any stage, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
To help you find the right partner, we've gathered more details on top VC firms investing in software companies, including their typical investment stages, geographic focus, and what makes each a unique option for founders.
1. Draper Associates
Based in San Mateo, Draper Associates is an early-stage venture capital firm that invests in companies aiming to transform their industries. They focus on backing founders with ambitious ideas from the very beginning.
The firm’s portfolio highlights a focus on significant outcomes, featuring well-known companies like the stock-trading app Robinhood and the streaming platform Twitch. This track record shows a clear preference for investing at the seed and early stages.
Draper Associates is a strong potential partner for early-stage founders who have a big vision, particularly in fintech or software. Once you secure funding from a firm like this, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed and early-stage venture
Industries of focus: FinTech, Software, Financial Services
Geographical presence: San Mateo, California
Notable portfolio companies: Robinhood, Twitch, Ping Identity
Portfolio size: Over 400 investments
You can refer to their website here.
2. Thrive Capital
Thrive Capital is a New York-based investment firm that partners with companies in the internet, software, and technology sectors. They are known for building and investing in businesses from their earliest stages through to maturity.
The firm has a strong track record of backing category-defining companies, particularly in AI and fintech. Their investments in high-profile names like OpenAI and Stripe, as noted in an analysis of the firm, signal a focus on ambitious founders building foundational technology platforms.
Thrive Capital is a great potential partner if you are building a high-growth company with the potential to lead its market. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, early-stage, and late-stage venture
Industries of focus: Software, Finance, Financial Services
Geographical presence: New York, New York
Founded: 2009
Notable portfolio companies: Stripe, OpenAI, Robinhood, Nubank, Databricks
Portfolio size: Over 370 investments
You can refer to their website here.
3. Work-Bench
Work-Bench is a venture capital firm based in New York City that specializes in seed-stage enterprise software companies. They focus on backing founders building for large corporations from the very beginning.
The firm has a clear focus on B2B and SaaS models, with a portfolio that includes high-growth companies like the digital identity platform Socure and mental health benefits provider Spring Health. This demonstrates their ability to support companies from seed funding to unicorn status.
Work-Bench is a strong match for founders of enterprise software startups at the seed stage, particularly those who value a community-focused approach and a strong New York presence. Once funding is secured, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help startups manage and deploy capital efficiently.
Investment stages: Seed, early-stage, and late-stage venture
Industries of focus: Enterprise Software, B2B, SaaS, Financial Services
Geographical presence: New York, New York
Founded: 2013
Notable portfolio companies: Socure, Spring Health, Cockroach Labs, Dialpad
Portfolio size: Over 75 investments
You can refer to their website here.
4. Amazon Alexa Fund
The Amazon Alexa Fund is the corporate venture capital arm of Amazon, providing up to $200 million to support innovation in voice technology. It backs companies that are building new capabilities with voice and AI.
The fund’s primary focus is strategic, investing in companies that can expand the Alexa ecosystem, from consumer hardware to enterprise software. Its portfolio includes smart home device maker Ring and fintech company Greenlight, showing a broad interest in technologies that can integrate with Amazon's platform.
The Alexa Fund is a strong choice for founders whose products align with Amazon's strategic interests in voice, AI, and IoT. Once funding is secured, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help startups manage and deploy capital efficiently.
Investment stages: Seed, early-stage, and late-stage venture
Industries of focus: Artificial Intelligence (AI), Voice Technology, Consumer Electronics, IoT, Software
Geographical presence: Seattle, Washington
Founded: 2015
Notable portfolio companies: Ring, Ecobee, Greenlight
Portfolio size: Over 140 investments
You can refer to their website here.
5. Playground Global
Playground Global is an early-stage venture capital firm in Palo Alto that backs founders with deep technical and scientific expertise. They focus on companies building foundational technologies that have the potential to create new markets or solve complex industrial problems.
The firm's portfolio shows a clear preference for deep tech, with investments in AI, robotics, and next-generation computing. Notable companies from their portfolio page include Agility Robotics, which develops humanoid robots, and MosaicML, an AI model-training platform acquired by Databricks.
Playground is a good match for technical founders building companies that require significant scientific or engineering breakthroughs to get off the ground. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
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, Ayar Labs
Portfolio size: 120 investments
You can refer to their website here.
6. Glasswing Ventures
Glasswing Ventures is a Boston-based firm that invests in early-stage companies applying AI and other frontier technologies to enterprise and cybersecurity markets.
The firm backs businesses with deep technical foundations, as seen in portfolio companies like Black Kite, a cyber-risk platform, and Zylotech, a customer-data platform acquired by Terminus.
Glasswing is a strong match for founders building AI-first solutions for the enterprise or security markets, particularly at the seed and early stages. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
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
Portfolio size: 71 investments
You can refer to their website here.
7. Freestyle Capital
Freestyle Capital is a San Francisco-based firm that invests in early-stage technology companies. They are known for providing seed funding to founders with promising ideas.
The firm has a strong history of backing successful software companies from their earliest days. Their list of portfolio companies includes unicorns like Airtable and Intercom, demonstrating an ability to identify future market leaders at the seed stage.
Freestyle is a strong match for founders raising a seed round for a software or technology company. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, Early Stage Venture
Industries of focus: Software, Information Technology, Finance
Geographical presence: San Francisco, California
Founded: 2009
Notable portfolio companies: Airtable, Intercom, Patreon, BetterUp, Snapdocs
Portfolio size: Over 220 investments
You can refer to their website here.
8. Elsewhere Partners
Elsewhere Partners is an Austin-based growth capital firm that invests in B2B software companies. They specifically focus on businesses built outside of traditional venture hubs.
The firm’s strategy centers on identifying established software businesses ready to scale, often in overlooked markets. Its track record includes backing companies like SailPoint and SolarWinds, both of which achieved significant exits through IPOs or acquisitions.
This firm is a great match for founders of capital-efficient B2B software companies who are seeking growth financing and are based outside of major tech centers. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, early-stage, late-stage venture, and private equity
Industries of focus: B2B Software, Information Technology, Internet
Geographical presence: Austin, Texas
Founded: 2017
Notable portfolio companies: SailPoint, SolarWinds, Bazaarvoice
Portfolio size: 22 investments
You can refer to their website here.
9. Script Capital
Script Capital is a San Francisco-based venture firm that invests in early-stage internet and software companies. They focus on providing initial capital to help founders get their ideas off the ground.
The firm has a history of backing companies that achieve successful exits through acquisition by major tech players like Snap, Datadog, and Spotify. Their investment in Patreon also shows their ability to support companies that grow into well-known consumer brands.
Script Capital is a good fit for founders building software at the seed stage, especially if your product has the potential to be an attractive acquisition for a larger platform. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, Early Stage Venture
Industries of focus: SaaS, FinTech, Big Data, Software
Geographical presence: San Francisco, California
Founded: 2016
Notable portfolio companies: Patreon, Zenly (acquired by Snap), Sqreen (acquired by Datadog)
Portfolio size: 56 investments
You can refer to their website here.
10. Powerhouse Ventures
Powerhouse Ventures is an Oakland-based firm that backs seed-stage startups building software to decarbonize global energy and mobility systems. They provide early capital to companies creating innovative solutions in the climate tech space.
The firm has a clear focus on software for the energy, mobility, and cleantech sectors. Their investment in Raptor Maps, a solar asset management platform, highlights their commitment to backing companies that accelerate the clean energy transition.
Powerhouse Ventures is a great match for founders at the seed stage whose software products directly address decarbonization in energy or transportation. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, Early Stage Venture
Industries of focus: CleanTech, Renewable Energy, Electric Vehicles, Software
Geographical presence: Oakland, California
Founded: 2018
Notable portfolio companies: Raptor Maps, Zenduty, CropLogic
Portfolio size: 47 investments
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. They provide capital to businesses that have already found their footing and are ready to expand.
The firm has a strong track record of backing successful software companies, including cybersecurity unicorn Arctic Wolf and DevOps platform CloudBees. Their portfolio shows a focus on established businesses that have achieved significant market traction and successful exits.
Blue Cloud Ventures is a good fit for founders of growth-stage software companies seeking capital to accelerate their expansion. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Early and late-stage venture
Industries of focus: Software, Finance, Financial Services
Geographical presence: Miami, Florida
Founded: 2012
Notable portfolio companies: Arctic Wolf, NGINX, OneLogin, Go1, CloudBees
Portfolio size: 56 investments
You can refer to their website here.
12. LDV Capital
LDV Capital is a New York-based firm that invests in deep technical teams. They focus on startups using computer vision, machine learning, and AI to analyze visual data.
The firm's portfolio highlights this focus with companies like the generative AI video platform Synthesia, and they have a track record of successful exits, including Mapillary (acquired by Meta) and the cancer-screening company Ezra.
LDV Capital is an ideal partner for founders with strong technical backgrounds building businesses centered on visual data analysis. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, early-stage, and 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, Ezra (acquired by Function Health), Mapillary (acquired by Meta)
Portfolio size: 55 investments
You can refer to their website here.
13. Cisco
Cisco’s investment arm acts as the corporate venture capital (CVC) division for the global technology company. It primarily backs startups that are strategically aligned with Cisco’s long-term vision and product ecosystem.
The firm has made a significant commitment to artificial intelligence, recently launching a $1 billion AI fund. This is highlighted by its investments in leading AI companies like Cohere and Mistral AI, signaling a focus on enterprise-grade AI.
Cisco is a strong potential partner for founders of growth-stage software companies, especially in AI, whose technology could integrate with Cisco's platform. Once funding is secured, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help startups manage and deploy capital efficiently.
Investment stages: Late-stage venture, strategic investments
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
Portfolio size: Over 220 investments
You can refer to their website here.
14. Initialized Capital
Initialized Capital is a San Francisco-based firm that provides early-stage funding, often writing the first seed checks for founders with backgrounds in software engineering and design.
The firm is known for making early bets that turn into major successes, with portfolio companies like Coinbase and Instacart. This track record points to a focus on backing strong technical teams building foundational companies from the ground up.
Initialized Capital is a great potential partner if you are a technical founder looking for your first institutional investment. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Investment stages: Seed, early-stage, and late-stage venture
Industries of focus: Software, Finance, Financial Services
Geographical presence: San Francisco, California
Founded: 2012
Notable portfolio companies: Coinbase, Instacart, Cruise, Patreon, Opendoor
Portfolio size: Over 530 investments
You can refer to their website here.
15. FUSE
FUSE is a Seattle-based venture capital firm that backs early-stage software companies. They focus on providing foundational capital and support to businesses primarily in the Pacific Northwest.
The firm emphasizes its deep ties to the Seattle tech community, highlighting a network that includes founders from major successes like Auth0, Apptio, and Smartsheet. This signals a focus on enterprise software and backing teams with the potential for large-scale outcomes.
FUSE is a strong potential partner for founders of early-stage B2B software companies, particularly those in the Seattle area who can benefit from a local investor with a strong operator network. Once funding is secured, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help startups manage and deploy capital efficiently.
Investment stages: Seed and early-stage venture
Industries of focus: Artificial Intelligence (AI), Machine Learning, Software
Geographical presence: Seattle, Washington
Founded: 2020
Notable portfolio & network companies: Carbon Robotics, Icertis, Auth0, Apptio, Smartsheet
Portfolio size: 47 investments
You can refer to their website here.
What This Tells Us About The VC Scene for Software Companies
This overview of venture firms shows a healthy and varied funding environment for software companies. There is strong support for early-stage businesses, with many firms specializing in seed and Series A rounds. This is good news if you are a founder looking for your first institutional check to build your product and find market fit.
While many investors are still concentrated in traditional tech hubs like the Bay Area and New York, the presence of firms in other cities like Austin and Miami—and those specifically targeting companies outside of venture centers—shows that you can find capital almost anywhere. The key is to find a partner whose focus aligns with your stage, industry, and location.
Once you secure that funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently.
Raise Confidently with Rho
Your time is one of your most valuable assets during a fundraise. A focused list of investors who understand your software business helps you direct your energy where it matters most.
When your hard work pays off and the round is closed, the next step is putting that capital to work. If you’ve just raised, Rho can help you set up your financial stack in minutes.
Our integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy your new capital efficiently from day one.
FAQs about Venture Capital Firms Focused on Software
Are there major tech VC firms outside of California and New York?
Yes, while many top firms are in traditional hubs, cities like Austin, Boston, and Seattle have strong venture communities. Firms like Elsewhere Partners and FUSE specifically focus on backing companies in emerging tech centers across the country.
Which VC firms focus on SaaS startups?
Many firms specialize in SaaS. Work-Bench focuses on enterprise SaaS at the seed stage, while firms like Elsewhere Partners provide growth capital for established B2B software companies. Thrive Capital also has a strong software and SaaS portfolio.
What are some top AI-focused venture capital firms?
Firms like Glasswing Ventures and Playground Global are known for backing AI-first companies. Additionally, corporate VCs like the Amazon Alexa Fund and Cisco's investment arm have dedicated funds to support innovation in artificial intelligence and machine learning.
What operational software do venture capital firms use?
VC firms use specialized software for portfolio management, reporting, and data analysis. These tools help them track company performance, manage financial data, and identify trends, which informs their investment decisions and support for their portfolio companies.
How do I find the right software investors for my startup?
Start by researching firms that invest in your industry and stage. Focus on investors whose portfolio and thesis align with your business, and seek warm introductions through your network when possible. This guide is a great starting point.
How can Rho help after raising from a venture capital firm?
Once your funding is secured, our platform helps you manage it. Rho provides integrated business banking, corporate cards, and automated bill pay, helping you deploy your new capital efficiently from day one.