Tech veterans Chris Messina and Brian McCullough have launched a $15 million fund specifically for AI startups, backed by prominent investors like Marc Andreessen, Chris Dixon, and Dennis Crowley, who are all personally contributing.
McCullough brings experience from his Ride Home Fund, which he has successfully managed for two years as a spin-off from his Techmeme Ride Home podcast. Messina, known for his past roles at Google and Uber, as well as for founding an AI startup, is also recognized as the inventor of the hashtag. He holds the title of the top product hunter on Product Hunt, which enhances his unique ability to elevate emerging products.
In an email interview, McCullough shared insights about the current influx of AI interest: “Our deal flow has shifted to 90% AI. Chris pointed out that individuals who previously were hesitant about crypto or web3 are now enthusiastic about AI, and these are seasoned investors worth backing in any venture.” He noted that recent layoffs at major tech companies have left university graduates scrambling for quick funding opportunities ranging from $100,000 to $500,000 to support emerging AI ideas. “We’re witnessing the best talent from both past and current generations mobilizing at once. It’s an extraordinary convergence,” he added.
The fund plans to be a first check for pre-seed or seed investments, aiming to allocate all its capital within the next 12-18 months. The fundraising round for this 506c fund will conclude on October 31. As a 506c fund, it allows any accredited investors to join as limited partners, provided they meet the minimum investment requirement of $100,000.
Messina is transitioning to the venture capital landscape after a successful run as a prolific angel investor. I asked him how investors aim to navigate the potential pitfalls of the current AI hype cycle that could draw them into overvalued companies.
“We see this as a generational shift in technology usage. Reflecting on my experiences building the social web, I recognize a shift similar to what we experienced in 2005," he explained. "Generative AI is poised to transform software development and utilization in ways that surpass the impact of the iPhone 16 years ago. It paved the way for next-gen companies like Airbnb and Uber (where I previously worked), which revolutionized transportation and housing using technologies such as GPS and payment systems.”
“We’re optimistic that the companies we support now will redefine traditional industries. We're investing in the realization of generative AI through founders equipped with specialized knowledge in areas like compliance and DIY repairs (yes, we are already issuing checks),” he concluded.
However, amid the dominance of major AI players, I inquired about the chances for smaller startups to effectively compete.
"The niches we’re focusing on are too specialized for larger incumbents to adequately address," he stated. "These giants are building broad platforms that cannot be finely tuned for specific applications. Additionally, creating optimal user experiences with generative AI necessitates deep industry knowledge and customer empathy—qualities that large tech firms typically lack, as I’ve observed during my time at Google. They also struggle to develop products quickly with the level of finesse needed to capture the markets we believe are ripe for disruption.”
I also asked about the challenges faced by AI investors, considering emerging obstacles like the restriction of AI crawler bots.
“We often hear: where is the competitive advantage? Where will the value be generated? While there are numerous risks involved, the blocking of AI crawler bots is not at the forefront of our concerns. Those who are waiting for a clear passage are misguided and will likely regret their caution in 18 months," he emphasized.
With Messina’s influential history in successful tech ventures, this could signal the true beginning of an AI startup boom.
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