Theory Ventures

Theory Ventures is a San Francisco venture capital firm investing in early-stage software companies across AI, data infrastructure and Web3. It provides $1–40 million investments at stages ranging from inception and seed through Series B. Its investment thesis centers on companies that turn technological shifts into advantages in how they bring software to market. Portfolio investments include MotherDuck and LanceDB in databases and Omni in analytics.

Founded in 2023 by Tomasz Tunguz, who serves as General Partner, Theory also builds internal technology to support its investment work. Its engineers and researchers develop AI agents that map markets, pipelines that identify companies before fundraising, and research infrastructure for evaluating opportunities. The firm experiments with AI across sourcing, diligence, portfolio support and internal operations, giving its investment team practical experience with the systems it backs.

Theory uses a concentrated portfolio model, targeting 12–15 core positions per fund. It announced its $450 million Fund II in 2024 and, as of August 2026, reported $688 million in assets under management, with Fund II being deployed.