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

Seven Stars, a newly-launched venture capital firm, has announced the inauguration of its first $40 million pre-seed and seed-stage fund, which was oversubscribed within just five weeks. Founded and managed by Steven Lee, a former partner at SV Angel, Seven Stars aims to support early-stage AI startups with a strong emphasis on applications in both consumer and enterprise technology. Steven Lee, who has been investing in seed-stage AI companies since the early days of the AI revolution, sees tremendous potential in AI's ability to democratize opportunities and impact the lives of billions globally. "AI is the equalizer for the 90%, poised to transform lives on a global scale," Lee stated, highlighting his vision of empowering individuals and companies in a rapidly-changing world. Lee’s strategic approach involves providing hands-on fundraising coaching, facilitating access to a diverse talent pool, and connecting founders with a curated advisory network. This network features experienced professionals from leading AI companies such as Google, Nubank, Meta, Microsoft, and OpenAI, who can offer valuable insights and support. The firm operates on a collaborative model, co-investing with other venture capitalists and angel investors. Seven Stars has attracted a diversified and well-established base of limited partners (LPs) including long-term institutional investors such as a university endowment, a pension fund, and firms managing capital for endowments, foundations, and insurance companies. Industry insiders have expressed significant confidence in Seven Stars and its founder. Hunter Somerville, Partner at StepStone Group, a global private markets investment firm, praised Lee’s extensive relationships and trusted reputation. "Steven’s extensive relationships and trusted reputation with leading AI companies have positioned Seven Stars to drive the next phase of AI-driven disruption," Somerville said. "We’re proud to invest in his oversubscribed inaugural fund." Nate Leung, Partner at Sapphire Partners and co-founder of OpenLP, emphasized Lee’s track record and investment edge. "Steven exemplifies the core principles we look for when backing a new manager. 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," Leung noted. "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." Personal Background and Values Lee’s personal background significantly informs his investment philosophy and the ethos of Seven Stars. Born to Korean immigrants in Los Angeles' Koreatown, he grew up immersed in his parents’ small clothing business, "Seven Star Fashion," which inspired the firm's name. Lee’s experience growing up in a multicultural environment and overcoming challenges has shaped his empathy and connection with founders who have similarly resilient backgrounds. His dedication to diversity and inclusion is evident through his active involvement in Gold House, a non-profit organization that empowers and unites Asian Pacific creators and businesses. For the accolade, Gold House recognized Lee as one of the most impactful Asian Pacific leaders in culture and society in 2024, alongside notable figures such as 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," Lee explained. "Digging into the real grit of the founder can often signal the ultimate success of a startup—especially with the founder at the center of it all." About Seven Stars Seven Stars is a pre-seed and seed-stage fund focused on partnering with next-generation founders to build enduring AI companies. The firm’s focus spans both consumer and enterprise technology applications. Steven Lee, with nine years of investing experience, has advised hundreds of founders on over 900 financings, amassing a capital raise of more than $1.25 billion. Industry insiders view the launch of Seven Stars as a promising development in the VC landscape, particularly in the AI sector. Lee’s combination of personal values, professional expertise, and strategic approach positions him well to identify and nurture the next wave of transformative AI-based startups. The firm’s robust LP base and Lee’s network suggest strong potential for delivering meaningful impact and returns. For more information, visit www.sevenstars.vc. Seven Stars represents a significant shift in venture capital, focusing on early-stage AI startups with a mission to bridge the gap between elite knowledge workers and the broader global population. Steven Lee’s unique blend of experience, network, and personal values makes him a noteworthy figure in this emerging space. The firm’s collaborative approach and emphasis on founder grit and resilience are expected to foster innovation and drive growth in the AI industry.