A young VC closed a $10 million fund for AI seed startups. Here's what he's looking for and the pitch deck he used.

Sam Awrabi, a 31-year-old venture capitalist, has successfully secured $10 million to focus exclusively on investments in AI startups, which he describes as "the dominant force of our lifetime." Awrabi predicts that advancements in artificial intelligence will surpass the combined impact of mobile technology and the web, with potential productivity increases for individuals ranging from 50% to 75% in the coming years. Operating under his firm, Banyan Ventures, Awrabi’s AI Fund I will target startups that have integrated AI into their core operations from the outset. He emphasizes the significant opportunities within AI infrastructure, highlighting the potential for startups that aim to lower AI-related costs, including innovations in inference chips and cooling technologies. "Nvidia is already valued at $4 trillion, and we are still in the nascent stages of this market," Awrabi noted. "Consider what the leading players in AI infrastructure could be worth three decades from now." On the application side, Awrabi is on the lookout for startups that possess unique data access and can create high-leverage workflows to streamline processes within specific sectors. To date, Banyan Ventures has invested in 14 companies, including AI inference chip maker Positron and GPU cooling startup Akash, as well as Italian AI legal assistant Lexroom. The fund plans to invest in 36 startups at the seed and pre-seed stages, primarily those that have already begun generating revenue, with investment amounts ranging from $200,000 to $425,000. As the sole general partner of the fund, Awrabi is entering a highly competitive landscape dominated by larger venture capital firms. However, he believes that Banyan’s specialized focus on AI provides a distinct advantage. The seed funding environment is becoming increasingly challenging, as AI startups tend to require less capital, generate revenue more quickly, and transition to Series A funding at a faster rate. With a background in AI technical sales since 2018, including roles at Samsung-owned MissingLink.ai and Comet, Awrabi’s extensive network offers valuable insights into emerging deals and talent eager for new opportunities. A glimpse into the pitch deck Awrabi utilized to secure the $10 million for Banyan Ventures' AI Fund I reveals strategic insights, though some details have been redacted for public sharing.