Active Capital Closes $28M Fund for Enterprise AI and Cloud Infrastructure Startups

Active Capital, a San Antonio-based solo GP venture firm, has closed its third fund worth $28 million, focusing on investments in enterprise AI and cloud infrastructure startups at the pre-seed stage. The fund has brought the total assets under management of Active Capital, founded by Pat Matthews, to over $100 million across three funds and several Special Purpose Vehicles (SPVs). 

The firm has a successful track record, with the first fund returning nearly 70% of capital and the total value to paid-in capital approaching 4x. Active Capital has backed more than 50 startups nationwide, including companies like ProsperOps, Teleport, Super Dispatch, ConductorOne, and Schematic. The firm favors startups led by technical founders, leading or co-leading pre-seed rounds with an average check size of $500,000 to $1 million. All LPs are 'entrepreneurial' individuals or family offices.

The latest fund closing coincides with U.S. pre-seed funding, which has reached $556 million across 600 deals so far this year, as per Crunchbase data. Matthews emphasized the significance of the pre-seed stage, citing its foundational nature and unique market potential. He also highlighted the dominance of AI in the current tech landscape, expressing excitement for AI-native companies and the reshaping of infrastructure and security layers.

The firm invests across the country, with portfolio companies in various locations, including Austin, Kansas City, Atlanta, New York, and San Francisco. Matthews attributes Active Capital's fundraising success to direct support from founders, operators, and entrepreneurial families. The firm intentionally avoided scaling up its Assets Under Management (AUM), staying committed to a small, disciplined fund size to maintain a focus on pre-seed investments.

Source: Crunch Base