BAG Ventures, co-founded by former Google vice president Bontia Stewart and former CapitalG partner Jackson Georges Jr., has announced the close of an $11.3 million fund. The fund is dedicated to backing early-stage artificial intelligence (AI) startups, with a focus on companies providing solutions that enterprises will pay for.
The firm has been investing from the fund for approximately two years and has already supported 10 companies. These include the software company SXD, the AI travel agent BizTrip, and the agentic reasoning platform Nomadic. BAG Ventures aims to invest the remainder of the fund over the next two years, with individual check sizes ranging from $100,000 to $500,000.
BAG Ventures invests in startups developing technologies across various AI-related fields, such as AI infrastructure, compute, physical and edge AI, security, governance, and vertical Software as a Service (SaaS). Georges stated that the firm's investment thesis is based on a shift in how enterprises are purchasing AI, moving away from an "experimental sandbox" phase towards deterministic solutions that integrate deeply into existing workflows.
Georges also noted that enterprises are increasingly focused on unit economics and are seeking solutions that execute work and provide clear paths to monetization. The firm is looking for core technical teams that have previously collaborated, possess a minimum viable product, and have a partner, along with a "very clear path to monetization within 24 hours."