Fuse, a venture capital firm based in Bellevue, Washington, has closed a $250 million investment fund that is set to support startups in the Pacific Northwest (PNW) region. The fund, known as “fund 2,” will focus on software and “AI-enabled” startups and is backed by state-affiliated accounts, foundations, universities, and prominent Seattle-based software executives.
Key Takeaway
Fuse has closed a $250 million investment fund to support software and AI-enabled startups in the Pacific Northwest. The firm aims to be the go-to partner for early-stage founders in the region and offers a strong network of limited partners and potential enterprise buyers. With its deep roots in the Seattle entrepreneur scene, Fuse brings a unique perspective to the PNW startup ecosystem.
Investing in PNW Startups
Fuse aims to be the go-to partner for early-stage founders building cutting-edge software businesses in the PNW. The firm has built a strategic limited partner base that includes top technology leaders residing in the region. With its new fund, Fuse plans to back 30 to 35 companies, co-leading funding rounds and writing checks ranging from $1 million to $10 million.
Focus on Automation and AI
Fuse is seeking to invest in companies that automate business processes or make workers more efficient in their jobs. The firm’s portfolio already includes companies like Carbon Robotics, which is developing autonomous robots for weed control, and Quandri, which is bringing process automation to insurance brokers. Fuse believes that it not only invests in AI products but also helps build valuable AI businesses.
Why Choose Fuse?
Fuse asserts that it is positioned at the “epicenter” of AI innovation in Seattle, offering founders access to a strong network of limited partners and potential enterprise buyers. The firm values engaging with founders as early as possible, even before they have left their current employers. Fuse’s roots in the Seattle entrepreneur scene give it an advantage in understanding the unique needs and challenges of PNW startups compared to VC firms based in other locations.
Building the PNW Ecosystem
Fuse was founded in 2020 with the belief that the Seattle and PNW ecosystem was underserved. Despite there being over 100 funded unicorns in the region over the past decade, Fuse identified a gap in funding for Series A investments. The firm aims to provide local support and deep engagement to founders in the PNW, leveraging its proximity to major technology companies like Microsoft.
