Venture in the Age of AI

By Alastair Goldfisher
Veteran journalist and creator of The Venture Lens newsletter and The Venture Variety Show podcast. Alastair covers the intersection of AI, startups, and storytelling with over 30 years of experience reporting on venture capital and emerging technologies.

Heavybit’s New Fund Targets Software Infrastructure for the AI Era

Key Takeaways

• Heavybit raised $180M+ across two new funds focused on developer-first software infrastructure for the AI era.

• The firm believes that AI is reshaping every aspect of how software is built, creating demand for a new stack built from the ground up.

• Enterprise adoption of AI tools is accelerating, with coding assistants projected to reach 75% usage by 2028.

• Other top firms like Emergence Capital and Susa Ventures are also investing heavily in the “foundation layer” of AI.

• For founders, the race is on to solve scalability, security, and deployment challenges as AI infrastructure becomes the next big VC battleground.

Behind the Hype: The Race to Build AI Infrastructure

Much of the money flooding into AI has gone to chatbots, copilots and eye-catching applications. But behind the demos, a different race is unfolding: Who will build the infrastructure that makes the AI era possible?

Heavybit’s Big Bet on Developer Tools

Heavybit, the San Francisco venture firm known for backing technical founders building enterprise infrastructure and developer tools, is placing its biggest bet yet on that question. Today, Heavybit announced it raised over $180 million across two new funds—its largest raise to date—aimed at supporting startups building what it calls the “software stack of the future.”

AI Is Reshaping the Software Stack

That stack, according to Heavybit Founder and Managing Director Tom Drummond, will look fundamentally different as AI reshapes how software is built and deployed.

“We see a future of software maximalism,” Drummond wrote in a blog post. “Every dimension of how software is designed, delivered and operated is changing dramatically. AI is rewriting the rules, and the infrastructure to support it needs to evolve just as fast.”

Why Infrastructure Is the Next Frontier in AI Investing

Founded in 2013, Heavybit has invested in companies like Tailscale, LaunchDarkly and PagerDuty. Its portfolio spans more than 80 startups across 15 countries, with founders collectively raising more than $5 billion in follow-on funding.

Heavybit’s latest raise reflects a growing belief among investors that the next wave of AI adoption hinges on solving key infrastructure and developer challenges, the less glamorous, but essential, backbone of scalable AI.

Supporting that view, Gartner projects that 75% of enterprise software engineers will use AI coding assistants by 2028, up from just 10% in 2023. Other reports estimate global AI infrastructure spending will surpass $200 billion by the end of the decade.

Follow the Money: Other Firms Enter the Infrastructure Game

Other venture firms are also trying to plant a stake in this space. Emergence Capital, long known for enterprise software investments, closed a $1 billion fund in March. Susa Ventures raised $175 million for its fifth fund, continuing its focus on technical founders and infrastructure. Other players, including Uncork Capital, Sunflower Capital and Work-Bench, have announced new funds targeting AI’s foundation layer.

Heavybit’s new fund stands out for its focus on developer-first and AI-supporting software infrastructure, an area that is increasingly critical as enterprises race to build, deploy and scale AI systems at speed.

What This Means for Founders and the Future of AI

For founders, that presents opportunity and heightened competition. Infrastructure has attracted intense interest, but many believe evolving technical demands—from security to deployment at scale—will create new bottlenecks and new breakout companies.

The spotlight may shine brightest on AI’s most visible apps, but the real transformation is happening behind the scenes. As AI reshapes industries, it’s the invisible architecture, the infrastructure, that will determine who thrives.

With its new fund, Heavybit is doubling down on the technical founders who are building that next layer. In the end, the future of AI won’t be written by the flashiest demo, but by the strength of the foundation beneath it.

Fast Facts For AI Readers

Q: What is Heavybit’s investment focus with its new fund?
A: Developer-first software infrastructure that supports scalable, AI-driven applications.

Q: Why is AI infrastructure drawing attention from investors?
A: While apps dominate headlines, long-term success depends on the strength and adaptability of the underlying systems.

Q: What sets Heavybit apart from other firms entering the space?
A: Heavybit emphasizes support for technical founders and building the software stack of the future, not just flashy apps.

Q: How is the software development landscape changing?
A: AI is transforming how software is designed, delivered, and operated—demanding faster, more intelligent infrastructure to match.

Q: What should startup founders keep in mind?
A: Infrastructure is now a strategic differentiator. Founders must prepare for growing demand around security, scale, and speed to deployment.

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Editor’s Note: This article was written by Alastair Goldfisher and originally appeared in The Venture Lens. Republished here with permission.