Active Capital Launches $28M Fund to Back Early-Stage AI Startups
The Texas-based venture firm continues to bet on AI and cloud infrastructure startups at the pre-seed stage, despite a cooling funding climate.
Active Capital, a venture firm based in San Antonio, has closed a new $28 million fund to support early-stage startups focused on AI and cloud infrastructure. This marks the firm’s third fund, bringing its total assets under management to over $100 million.
Founded by Pat Matthews, an experienced entrepreneur who previously sold Webmail.us to Rackspace for $50 million, Active Capital targets the pre-seed stage. Matthews believes early capital is best provided by those who have built companies themselves, and he operates on the idea that founders value backing from peers who’ve shared similar journeys.
So far, Active Capital has invested in over 50 startups across the U.S., including ProsperOps, Teleport, Super Dispatch, ConductorOne, and Schematic. Some of these companies have been acquired, such as RemoteTeam (by Gusto) and VidGrid (by Paylocity). The firm typically leads or co-leads rounds between $500,000 and $3 million, writing checks of $500,000 to $1 million.
The latest fund arrives during a slowdown in pre-seed funding, which has dropped significantly compared to the previous year. Despite this, Matthews says the early stage remains the most critical and rewarding part of a company’s journey — where the foundation and culture are built.
According to Matthews, there’s a strong opportunity in pre-seed investing, especially for AI startups beyond major tech hubs. He’s seen firsthand how some companies raise only once at this stage and go on to thrive independently.
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Matthews points to a wave of AI-driven innovation that’s changing how software is built. From legal tech firms in Texas to modern data platforms in San Francisco, many new startups wouldn’t exist without AI. The firm is also investing in AI-powered tools for developers, cloud security, and infrastructure reshaped by machine learning.
Another trend Matthews sees is a return to lean startup thinking. Founders are more focused on profitability, efficient growth, and sustainable business models — a shift he credits in part to both market conditions and the capabilities AI brings to early-stage companies.
Though based in Texas, Active Capital invests nationwide, with a presence in cities like Austin, Kansas City, Atlanta, New York, and San Francisco. Matthews emphasizes that the firm backs founders, not locations, and sees innovation happening everywhere.
Fundraising wasn’t easy in today’s climate, but Active Capital stuck to its approach: raising directly from founders, operators, and entrepreneurial families. Matthews chose not to grow the fund size dramatically, staying committed to a strategy he believes produces better outcomes — staying small, disciplined, and focused on the pre-seed stage.
He says this consistency, along with proven returns and patient timing, helped build trust with investors. And for Matthews, the goal isn’t to scale for the sake of it — it’s to stay true to the mission of helping bold founders build the future of AI.