Top 15 Venture Capital Firms Investing in Software

For founders in the Software industry, understanding which investors to approach is a critical part of raising capital. Finding the right tech venture capital firms—those that specialize in SaaS, AI, or your specific niche—can significantly impact your fundraising journey.

To help you prepare, our team has curated this guide to some of the major VC firms investing in software. Use it to quickly learn about the investors most relevant to your company.

Actively raising? You can now access non-dilutive funding options like venture debt and credit lines through Rho Capital. Rho provides access to business banking, corporate cards, and bill pay—built for startup teams moving fast.

Key Takeaways

• For software startups, securing venture funding provides the capital and strategic support necessary to scale operations, refine products, and expand into new markets.
• 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 raised a round, 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 days or preparing for an exit, it helps to connect with the right people. Here is a quick overview of which VC firms in software invest at each stage.

Pre-seed and Seed VC Firms in Software

Pre-seed and seed funding are the earliest forms of institutional capital, designed to help you turn an idea into a viable product and achieve initial market traction. For founders building in software, tech venture capital firms like Initialized Capital, Freestyle Capital, and Draper Associates specialize in providing this foundational support.

Early Stage VC Firms in Software

Early-stage funding, typically Series A and B, is for companies with a proven product and early revenue, aimed at scaling the team and accelerating growth. SaaS and AI venture capital firms such as Playground Global and Glasswing Ventures, along with enterprise-focused Work-Bench, are examples of investors that back companies at this stage.

Late Stage VC Firms in Software

Late-stage rounds provide significant capital to established companies looking to expand into new markets, make acquisitions, or prepare for an exit like an IPO. Major VC firms known for backing market leaders include Thrive Capital, growth-stage specialist BCV, and corporate investor Cisco.

As you evaluate equity partners, remember that non-dilutive financing can be a powerful complement. Rho Capital connects startups to venture debt and credit lines, while our integrated platform helps you manage your new capital with business banking, corporate cards, and automated bill pay.

It's also worth noting that many venture capital firms invest across multiple stages, from a company's first check to its pre-IPO rounds.

To help you identify the right partners, we've compiled a list of top VC firms that invest in the software sector. You'll find key details on their preferred investment stages, geographic focus, and what distinguishes each firm.

1. Draper Associates

Draper Associates is an early-stage venture capital firm from San Mateo, California, that invests in industry-transforming companies. They are known for backing major successes like Robinhood and Twitch, demonstrating a track record of identifying future market leaders early on.

With a focus on ambitious technology companies in sectors like FinTech and software, this firm is a good match for founders at the seed or early stages. If you are building a company with the potential for massive scale, their team may be a relevant partner to connect with.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Software, FinTech, Financial Services
• Geographical presence: San Mateo, California
• Founded year: 2015
• Notable portfolio companies: Robinhood, Twitch, Ping Identity, Zopa
• 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 internet, software, and technology-enabled companies. They are known for both building and investing, signaling a hands-on approach to helping founders create lasting businesses.

The firm supports companies across their entire lifecycle, from seed funding to late-stage growth rounds. Their portfolio features some of the most recognized names in modern tech, including Stripe, OpenAI, and Databricks, as noted in a recent analysis.

This focus on backing category-defining companies makes Thrive a compelling partner for founders with high-growth ambitions in software and finance. Their track record suggests a preference for product-led businesses that can scale significantly.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Finance, Financial Services
• Geographical presence: New York, New York
• Founded year: 2009
• Notable portfolio companies: Stripe, OpenAI, Robinhood, Nubank, Databricks
• Portfolio size: 370 investments

You can refer to their website here.

3. Work-Bench

Work-Bench is a New York-based venture capital firm that concentrates on enterprise software companies at the seed stage. They provide early, foundational capital for businesses building solutions for corporate customers.

The firm maintains a specific focus on B2B and SaaS, backing companies that serve other businesses. Their portfolio includes notable unicorns like Socure, an identity verification company, and Spring Health, a mental health benefits platform.

Work-Bench is a strong potential partner for founders building enterprise software, especially those connected to the NYC tech community. If you are at the seed stage with a B2B product, their specialized approach could be a great fit.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Enterprise Software, B2B, SaaS, Financial Services
• Geographical presence: New York, New York
• Founded year: 2013
• Notable portfolio companies: Socure, Spring Health, Dialpad, Cockroach Labs, VTS
• Portfolio size: 76 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 fuel innovation in voice technology. The fund backs companies that are building new applications and devices centered around voice interaction.

The firm invests across all stages, from seed to late-stage rounds, with a clear focus on AI, IoT, and consumer electronics. Its portfolio features well-known brands like Ring and Ecobee, signaling a preference for products that can integrate into the broader Amazon ecosystem.

This fund is a compelling partner for founders whose products have a natural alignment with Amazon's strategic goals in voice and smart home technology. If your company is building in this space, the Alexa Fund provides both capital and a potential pathway to a massive user base.

• Investment stages: Seed to Late Stage Venture, including convertible notes and debt
• Industries of focus: Voice technology, Artificial Intelligence (AI), IoT, consumer electronics, software
• Geographical presence: Seattle, Washington
• Founded year: 2015
• Notable portfolio companies: Ring, Ecobee, Greenlight, Osmo
• Portfolio size: 141 investments

You can refer to their website here.

5. Playground Global

Playground Global is an early-stage venture capital firm from Palo Alto that invests in deep tech companies. They specialize in backing founders with technical and scientific expertise to build businesses with a significant technological advantage.

The firm has a clear preference for companies tackling complex engineering challenges in areas like AI, robotics, and next-generation computing hardware. Their portfolio includes notable companies like Agility Robotics and MosaicML, which was acquired by Databricks.

Playground Global is a good fit for founders with a strong scientific or engineering background who are building companies rooted in deep technology. If your startup's core value is a technical breakthrough, their team has the expertise to support your growth.

• Investment stages: Early Stage Venture
• Industries of focus: Deep Tech, Artificial Intelligence (AI), Robotics, Software
• Geographical presence: Palo Alto, California
• Founded year: 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 backs early-stage companies using AI and other advanced technologies. Their focus is on startups building for the enterprise and cybersecurity markets.

The firm has a clear investment thesis centered on AI's application in business and security. Their portfolio includes companies like Black Kite, which provides cyber-risk monitoring, demonstrating their commitment to this space.

Glasswing is a strong potential partner if you are an early-stage founder building an AI-powered solution for business or security clients. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Artificial Intelligence (AI), Enterprise Software, Cybersecurity
• Geographical presence: Boston, Massachusetts
• Founded year: 2016
• Notable portfolio companies: Black Kite, ChaosSearch, Allure Security, Zylotech (acquired by Terminus)
• Portfolio size: 71 investments

You can refer to their website here.

7. Freestyle Capital

Freestyle Capital is a San Francisco-based venture firm that invests in early-stage technology companies. They specialize in providing seed funding to help founders build their businesses from the ground up.

The firm is distinguished by its track record of backing highly successful companies at their inception. Their impressive portfolio includes unicorns like Airtable and Intercom, demonstrating a knack for identifying future market leaders early on.

This makes Freestyle a compelling partner for founders raising a seed round for an ambitious tech company. Once you secure that initial funding, Rho can help you manage your new capital with integrated banking, corporate cards, and automated bill pay.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Software, Finance, Information Technology, Telecommunications
• Geographical presence: San Francisco, California
• Founded year: 2009
• Notable portfolio companies: Airtable, Intercom, Patreon, BetterUp, Snapdocs
• Portfolio size: 221 investments

You can refer to their website here.

8. Elsewhere Partners

Elsewhere Partners is a growth capital firm that backs B2B software companies built outside of traditional venture hubs. They focus on businesses that have already demonstrated product-market fit and are looking for a partner to accelerate growth.

The firm’s strategy centers on partnering with capital-efficient software companies that are ready to scale. Their portfolio includes major successes like SailPoint and SolarWinds, showing their ability to back companies through to significant exits.

This firm is an excellent match for founders of established B2B software companies based outside of traditional tech hubs. If you've built a strong business with limited outside funding and are now seeking a partner for growth, Elsewhere could be a relevant fit.

• Investment stages: Seed to Private Equity
• Industries of focus: B2B Software, Information Technology
• Geographical presence: Austin, Texas (invests outside of traditional VC hubs)
• Founded year: 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 venture firm based in San Francisco that invests in early-stage internet and software companies. They provide foundational capital to businesses building in sectors like SaaS, FinTech, and Big Data.

A key characteristic of the firm is its track record of portfolio companies being acquired by major tech players. Their investments include Zenly (acquired by Snap), Sqreen (acquired by Datadog), and LockerRoom (acquired by Spotify).

Script Capital is a good match for founders at the seed stage whose products have the potential for strategic acquisition. Once you secure funding, Rho’s integrated financial tools help you manage and deploy your new capital efficiently.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Software, SaaS, FinTech, Big Data, Internet of Things
• Geographical presence: San Francisco, California
• Founded year: 2016
• Notable portfolio companies: Patreon, Zenly (acquired by Snap), Sqreen (acquired by Datadog), LockerRoom (acquired by Spotify)
• Portfolio size: 56 investments

You can refer to their website here.

10. Powerhouse Ventures

Powerhouse Ventures backs seed-stage startups building software to decarbonize global energy and mobility systems. Based in Oakland, they provide foundational capital to companies focused on climate technology.

The firm has a distinct focus on software-driven solutions in CleanTech, backing companies like Raptor Maps, a solar asset management platform. Their portfolio highlights a pattern of successful exits, including an IPO for CropLogic and the acquisition of Zenduty by Freshworks.

This makes Powerhouse Ventures a strong match for seed-stage founders building software with a direct impact on decarbonization. If your company is creating solutions for the energy or transportation sectors, their specialized expertise could be highly valuable.

• Investment stages: Seed, Early Stage Venture, Convertible Note
• Industries of focus: CleanTech, Renewable Energy, Electric Vehicles, Software, Transportation
• Geographical presence: Oakland, California
• Founded year: 2018
• Notable portfolio companies: Raptor Maps, Zenduty (acquired by Freshworks), CropLogic (IPO)
• 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 scale.

The firm's portfolio shows a clear preference for market-leading enterprise software, with notable investments in cybersecurity and developer tools. They have backed major successes like Arctic Wolf and NGINX, which was acquired by F5 Networks.

BCV is a good fit for founders of established software companies seeking a partner for their growth rounds. Once you secure that funding, our integrated platform helps you manage your new capital with business banking, corporate cards, and automated bill pay.

• Investment stages: Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Finance, Financial Services
• Geographical presence: Miami, Florida
• Founded year: 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 backs technically-focused teams building companies around visual data. They invest in startups using computer vision, machine learning, and AI to interpret images and video.

The firm has a distinct focus on companies where the core innovation is the analysis of visual data. Their portfolio includes high-profile exits like Mapillary, which was acquired by Meta, and the unicorn Synthesia, a generative AI platform.

This makes LDV a strong match for founders with deep technical backgrounds in AI and computer vision. If your startup's advantage comes from analyzing visual information, their specialized focus could be a significant asset. Once you secure funding, Rho’s integrated financial tools help manage and deploy your new capital efficiently.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Artificial Intelligence (AI), Computer Vision, Machine Learning, Software
• Geographical presence: New York, New York
• Founded year: 2012
• Notable portfolio companies: Synthesia, Mapillary (acquired by Meta), Unsplash (acquired by Getty Images)
• Portfolio size: 55 investments

You can refer to their website here.

13. Cisco

Cisco, a global leader in networking and telecommunications, operates a corporate venture capital arm that invests in strategically aligned technology companies. Their focus is on businesses that complement their core offerings in hardware, software, and enterprise infrastructure.

A defining feature is their recent commitment to artificial intelligence, highlighted by a $1 billion AI fund. This has led to investments in leading AI unicorns like Cohere, Mistral AI, and Scale AI, signaling a clear priority for enterprise-grade AI solutions.

Cisco is a strong potential partner for founders building enterprise software, particularly in AI and communications infrastructure. If your company's technology has the potential for a strategic partnership or integration with Cisco's ecosystem, their corporate venture arm could be a valuable ally.

• Investment stages: Corporate Venture Capital, invests across stages
• Industries of focus: Enterprise Software, AI, Communications Infrastructure, Hardware
• Geographical presence: San Jose, California
• Founded year: 1984
• Notable portfolio companies: Cohere, Mistral AI, Scale AI, Anthropic, VMware
• Portfolio size: 229 investments

You can refer to their website here.

14. Initialized Capital

Initialized Capital is an early-stage venture firm that specializes in providing the first seed check to software engineers and designers. They focus on backing technical founders at the very beginning of their journey.

The firm is distinguished by its early investments in companies that went on to become massive successes, like Coinbase and Instacart. This pattern suggests a strong focus on product-centric teams with the potential for significant scale.

Initialized is a strong potential partner for technical founders raising their first round of capital for a software or fintech company. Once you secure that initial funding, Rho can help you manage your new capital with integrated banking, corporate cards, and automated bill pay.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Finance, Financial Services, Impact Investing
• Geographical presence: San Francisco, California
• Founded year: 2012
• Notable portfolio companies: Coinbase, Instacart, Cruise, Patreon, Opendoor
• Portfolio size: 538 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 provide foundational capital to businesses primarily in the Pacific Northwest, with a focus on enterprise technology.

The firm highlights its deep network of founders and executives from major tech successes like Auth0 and Smartsheet. This community-driven approach signals a commitment to providing practical mentorship alongside funding.

FUSE is a strong match for founders building enterprise software, especially in AI and machine learning. If you are seeking a partner with a network of experienced operators, their team is worth connecting with.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Software, Artificial Intelligence (AI), Machine Learning
• Geographical presence: Seattle, Washington
• Founded year: 2020
• Notable portfolio 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 review of venture capital firms shows a broad and active market for software companies. There is a notable concentration of investors focused on the early stages, offering strong support for founders seeking seed or Series A funding. Many of these firms also continue to invest in later rounds, providing a path for long-term growth.

Geographically, while traditional hubs like the Bay Area and New York are prominent, the presence of firms in cities like Austin, Seattle, and Miami indicates that opportunities are not confined to one or two locations. The variety in investor focus—from enterprise AI to deep tech and CleanTech—means you can find partners who genuinely understand your specific field. Once funding is secured, Rho’s integrated financial tools help you manage and deploy your new capital efficiently.

Raise Confidently with Rho

When you're fundraising, your time is your most valuable asset. A focused list of relevant investors helps you direct your energy where it matters most.

If you’re seeking funding, Rho Capital connects you to non-dilutive funding options like venture debt and credit lines through a fast, guided process. We help you access financing suited to your stage and business model without chasing lenders.

Once capital is secured, our integrated tools—business banking, corporate cards, and automated bill pay—help you manage and deploy funds efficiently. This gives you the financial control needed to build your company with confidence.

FAQs about Venture Capital Firms Focused on Software

Are there VC firms that invest outside of major tech hubs?

Yes, many firms now invest remotely or specialize in regions outside of traditional hubs like Silicon Valley and New York. Firms like Elsewhere Partners specifically focus on backing B2B software companies in emerging tech cities across the country.

What is the best way to get an introduction to a VC firm?

A warm introduction from a mutual connection, such as another founder or a lawyer in the startup community, is most effective. Cold outreach can work if your message is concise, targeted, and clearly explains your company's value.

Are there VCs that specialize in Web3 and blockchain?

Absolutely. Many venture firms now have dedicated funds or teams focused on Web3, crypto, and blockchain technologies. These investors bring specialized knowledge of the decentralized space and can provide more than just capital to founders building in it.

What do VCs look for in a software startup?

Investors typically look for a strong founding team, a large addressable market, a product with clear differentiation, and early signs of traction. Your ability to articulate this vision is key to a successful pitch for your company.

Should I consider venture debt alongside equity?

Venture debt can be a great complement to equity financing, allowing you to extend your runway with less dilution. Rho Capital helps you access non-dilutive options like venture debt and credit lines tailored to your company's needs.

How can I manage my capital after a successful fundraise?

Managing your new funding effectively is critical for growth. Our platform provides integrated business banking, corporate cards, and automated bill pay to give you full control over your finances. Get started with Rho.