Meet the 10 most active seed investors shaping tech in 2023

A new ranking of the 75 most powerful seed investors places Y Combinator at the top, having funded 2,728 startups in the last five years. The list, compiled by Insider, highlights the firms with the highest investment activity and the best track record for getting their portfolio companies to subsequent funding rounds, offering a clear guide for founders navigating a difficult fundraising environment. Techstars and 500 Global ranked second and third, respectively, underscoring the dominance of accelerator models in early-stage venture capital.

"The scale weights most heavily for activity: those cutting the most checks floated to the top of our ranking," the Insider report said of its methodology. "But the ranking was also heavily influenced by how well their five-year portfolio companies did when raising additional capital as needed." The ranking was based on Crunchbase data and verification from the firms themselves, using a weighted scale for investment volume and follow-on funding success.

Y Combinator's top spot is fueled by its massive accelerator batches, which have produced industry giants like Airbnb, Coinbase, and Stripe. Techstars, its closest competitor in the accelerator space, backed 2,425 startups in the same period, with successful graduates including ClassPass and DigitalOcean. 500 Global distinguished itself with a strong international focus, backing over 2,700 companies across 81 countries, including unicorns like Canva and Reddit.

For founders, this list clarifies which firms are genuinely active and successful, providing a crucial roadmap in a market where securing a first check has become increasingly tough. The concentration of power among the top firms shows that while thousands of seed funds exist, a select few command the most influence and resources, making their approval a critical signal for a startup's future prospects and ability to attract later-stage capital from firms like Andreessen Horowitz or Sequoia Capital.

1. Y Combinator

The undisputed leader in seed-stage investing, Y Combinator's model of funding every startup in its accelerator has made it the most prolific check-writer in the world. From 2018 through Q1 2023, it funded a staggering 2,728 startups. Its portfolio includes a hall of fame of tech giants like Airbnb, Coinbase, Instacart, and Stripe, making its program a powerful launchpad for founders.

2. Techstars

A global behemoth among accelerators, Techstars has backed 2,425 startups since 2018. Founded in 2006, it invests $120,000 into each startup accepted into its 50 annual accelerator programs across 15 countries. Its portfolio boasts successful exits and high-growth companies, including ClassPass, DigitalOcean, and PillPack, which was acquired by Amazon.

3. 500 Global

With 1,177 seed deals since 2018, 500 Global has built a diverse portfolio with a strong international footprint. Managed by CEO Christine Tsai, the firm has backed over 5,000 founders in 81 countries. Its notable investments include Australian design giant Canva, social media platform Reddit, and enterprise software company Talkdesk, with over 45 of its portfolio companies achieving valuations above $1 billion.

4. SOSV

SOSV, founded by Sean O'Sullivan, focuses on startups in human and planetary health, making 969 seed investments since 2018. The firm operates several topic-specific accelerator programs like HAX (hardware) and IndieBio (biotech). As of April 2023, its top 100 climate tech companies held a combined valuation of $11.69 billion, showing its commitment to deep-tech and impact-focused ventures.

5. Plug and Play

Operating as both an investor and a co-working space, the Bay Area's Plug and Play has invested in 820 startups at the seed stage since 2018. It runs accelerator programs across more than a dozen industries, including fintech and health. Its alumni network includes foundational tech companies like Dropbox and Guardant Health.

6. Liquid 2 Ventures

Co-founded by NFL Hall of Fame quarterback Joe Montana, Liquid 2 Ventures focuses exclusively on seed-stage startups. The firm has built an impressive portfolio that includes developer-collaboration platform Gitlab, defense-tech firm Anduril, and AI writing assistant Jasper. Montana's personal angel investments, including Pinterest and Dropbox, provided a strong foundation for the firm's strategy.

7. Soma Capital

Founded in 2015, Soma Capital has backed 725 startups since 2018, primarily focusing on SaaS, AI, and business software. The firm has a remarkable track record of writing the first checks to over 20 unicorn startups, including Deel, Ramp, Rippling, and Cruise, making it a key player in identifying future market leaders at their earliest stages.

8. Hustle Fund

Led by former 500 Startups partners Eric Bahn and Elizabeth Yin, Hustle Fund has backed 444 companies since 2018. The firm specializes in business-focused software companies, with notable investments in health-tech startup Rupahealth and no-code website builder Webflow. With $125 million under management, it has established itself as a significant force in early-stage B2B investing.

9. Alumni Ventures

Alumni Ventures operates a unique model, allowing accredited investors to participate in funds tied to specific universities like Harvard and MIT, as well as thematic funds. Founded in 2014, AV has raised over $1.1 billion across more than 30 funds, creating a large and engaged network of over 9,000 investors to support its portfolio companies.

10. Pear VC

Known for its early and successful bets on DoorDash, Guardant Health, and Gusto, Pear VC recently raised a new $432 million fund for early-stage investing. Founded in 2014 by Pejman Nozad and Mar Hershenon, the firm prides itself on backing diverse founders, noting that 41 percent of its portfolio companies have a female founder.

This article is for informational purposes only and does not constitute investment advice.