Seed Money In The AI Age: Venture Vectors

InnovationAISeed Money In The AI Age: Venture VectorsByJohn Werner,Contributor.Forbes contributors publish independent expert analyses and insights. I am an MIT Senior Fellow & Lecturer, 5x-founder & VC investing in AIFollow AuthorApr 26, 2026, 06:02pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Venture capital concept. Dollar sign, an arrow and gears.gettyThere’s a lot of money being thrown into AI. Many analysts choose to focus on the funding within established companies, like Meta’s enormous investment, or the Project Stargate touted by partners OpenAI and Softbank and Oracle, with a $50 billion price tag. But venture capital firms are in the mix, too – they are out there looking for who to fund, as the space heats up. Some may think we’re in a bubble, but the VCs are undaunted, and scouting for AI plays.In fact, what researchers are finding is that AI firms, and physical AI firms in particular, are winning the day. Joanna Glassner, writing at Crunchbase, has more on what kinds of companies VCs desire:“The stereotypical seed-funded company may be a scrappy startup with a shoestring budget,” Glasner writes. “But in the age of AI, that’s not where investors are concentrating their bets. Instead, recent months have served as a busy period for big commitments to seed-stage companies that are short on operating history and long on ambition.”Eze Vidra, at VCCafe, takes a slightly different tack, referencing a “distortion field” laid on the market by AI.“For founders and investors alike, the ‘standard’ rules of the seed game are being rewritten, driven largely by an unprecedented distortion at the top of the market caused by Generative AI companies, across all stages,” Vidra writes.MORE FOR YOUMore from BostonOur Imagination in Action event in April actually had a panel on tis exact topic. Participants talked about seed money, where it goes, and ow to get it, with insights on why and h...