Europe’s #1 AI VC Goes Global: AI Seed Launches Fund II

London, UK. Friday, 18 September 2026: Europe’s number one pure-play, vertical AI venture capital firm, AI Seed, launched its new AI investment fund, AI Seed Fund II. The $50M fund will invest in 40 AI companies globally over the next four years at Pre-Seed, Seed, and Series A. The launch follows AI Seed’s successful inaugural fund, AI Seed Fund I, which has already achieved a 6x+ investment return and delivered five successful early exits and one AI unicorn, 9fin, to date.

AI Seed invites new institutional investors, family offices, and corporate venture investors to join its established investor group. Focused on pure-play, vertical AI software across diverse geographies and industries, the fund provides $1M–$2M first checks, and follow-on investments, with AI Seed often as the lead investor. AI Seed brings partner investors to deals, collaborating with the likes of Khosla Ventures, Balderton, M12 (Microsoft Ventures), and Google Ventures.

Expanding on the new fund, AI Seed’s Founder and Managing Partner Michael Axelgaard said:

“With the unique technological environment we’re in and the success of our previous fund, already valued at over a 6x multiple and with early exits achieving multiples of between 5x and 125x, now is the ideal time to launch AI Seed Fund II.

“AI is a once-in-a-generation transformational technology, but the AI industry is also currently in a state of high exuberance, and seasoned AI investors like AI Seed are needed now more than ever to cut through the hype and invest in the companies delivering real long-term value with AI.

“Unlike other firms, AI Seed has been investing exclusively in vertical AI since 2017. We’re AI industry veterans who’ve been doing this for nearly a decade now—founders and investors are in safe hands with AI Seed.

“Since we started, the scale and capabilities of AI have changed, but its core principles remain the same. AI Seed has prospered through several boom-and-bust cycles in the AI industry by focusing on companies with long-term AI defensibility and delivering real long-term value with AI.

“Having been part of the AI industry from the start, it’s remarkable to see other investors make the same mistakes today as ten years ago by not testing the AI models of prospective companies or not having a plan for their long-term AI defensibility.

“What’s different today is the speed and scale at which small, focused AI teams can outperform and unseat large, established incumbents—the next generation of AI is fundamentally changing the unit economics of profitability and company-building itself.

“The best vertical AI companies no longer need to raise past Series A, and the best AI teams are no longer concentrated in one geographic area. AI Seed Fund II builds on our near-decade of AI investment experience and provides investment and support to this next generation of AI founders.

“Fund II will invest in 40 vertical AI companies in diverse industries at Pre-Seed, Seed, and Series A in Europe, the US, and Asia to capture the world’s best AI companies at both peak valuation increase and peak impact on our future.”

AI Seed Fund II is now open to new institutional investors, family offices, and corporate venture investment partners. Register your interest here.