Brainworks Ventures Launches $50 Million AI-Native Fund
SAN FRANCISCO — Brainworks Ventures, an AI-native venture capital fund led by DARPA alumnus Dr. Phillip Alvelda, has announced the launch of its $50 million fund specifically designed for what Managing Partner Dr. Phillip Alvelda calls “the new mathematics of AI-native companies.” The fund is targeting a first close of $15 million by Q1 2026, with a target fund size of $50 million, scalable to $75 million.
The Company understands the venture capital playbook that has driven Silicon Valley for the past 20 years is broken and the transformation they’re betting on is exponential. Brainworks Ventures’ initial fund will focus on AI applications, infrastructure, and tooling, healthcare and life sciences, enterprise productivity, and education. With investment sizes ranging from $250,000 to $10 million and geographic reach across North America, Europe, and Asia-Pacific. Brainworks aims to capture the best AI-native founders wherever they’re building.
“The old VC equation was straightforward: raise $150 million over 4-5 rounds of finance, hire 100 or more people, wait 12 years, and hope for a unicorn listing,” said Phillip Alvelda, Co-Founder and Managing Partner at Brainworks Ventures. “Now, old guard VCs are trying to bolt AI onto their portfolio companies’ existing legacy infrastructure. That’s like adding a turbocharger to a horse-drawn carriage. That just isn’t going to be competitive with future AI-native companies. That’s why we’ve designed an investment and return model we know will work and scale companies at newly enabled AI-rates from day one.”
Alongside Alvelda, Brainworks brings together Volker Hirsch, who has spent 13 years investing in early-stage companies, including 6 years as Partner at Amadeus Capital Partners, often called Europe’s most active AI investor, whose recent exits include OrganOx (acquired by Terumo) and Cryptosense (acquired by Eric Schmidt-chaired SandboxAQ). Louis Rajczi, with 14 years at Forté Ventures and 9 years at Siemens Venture Capital, rounds out the advisory team. All together, they bring 80+ years of combined experience building, scaling, and investing in AI companies. The team has collaborated for over 20 years, beginning in 2000, long before AI became fashionable. This isn’t a group pivoting to chase the AI wave; they helped create it.
Upon selling his new ultra-low power AI chip business for over $90 million dollars, Dr. Ryad Benoseman credits Alvelda with offering the critical support to create his company. “Seven years ago, I founded GrAI Matter Labs with $1M from DARPA,” said Benosman, “It would not have been possible without the incredible talent of Phillip Alvelda, who understood, and believed in the theory of a novel brain-like machine.”
