Base10 Partners Closes 2 Funds Totaling $850M To Invest In Real Economy Automation
San Francisco venture firm Base10 Partners closed two new funds totaling $850 million to back companies automating the real economy with AI, sectors like logistics, payroll, and construction. The raise lifts the firm's assets under management to $2.6 billion. Co-founder Adeyemi Ajao frames the strategy as using technology to give the other 99 percent of businesses the capabilities once reserved for the top 1 percent.
Key Takeaways
- Base10 Partners closed two funds totaling $850 million: a seed and Series A fund (its fourth early-stage fund) and a Series B fund (its second growth fund).
- The new capital raises the firm's total assets under management to $2.6 billion, with the funds actively deploying.
- The firm targets the real economy, industries like logistics, payroll, and construction, rather than foundation models or developer tools.
- Co-founder Adeyemi Ajao describes the thesis as bringing capabilities once available only to the top 1 percent to the other 99 percent of businesses.
- Base10 built an internal AI tool called Base11 to classify companies and automate sector research, though Ajao says final decisions remain human-led.
- Through its Advancement Initiative, Base10 donates up to 50 percent of its carried interest to underfunded colleges and universities for financial aid.
Stats & Key Facts
- #$850 million raised across the two new funds combined.
- #$2.6 billion in total assets under management after the close.
- #10 to 15 seed investments planned per year from the early-stage fund.
- #2 to 3 Series A investments planned per year from the early-stage fund.
- #3 to 4 Series B investments planned per year from the growth fund.
- #Up to 50 percent of carried interest donated to underfunded colleges through the Advancement Initiative.
Two Funds, $850 Million, and the Real Economy Thesis
Base10 split the raise across an early-stage fund and a growth fund.
- ›The early-stage vehicle is the firm's fourth seed and Series A fund.
- ›The growth vehicle is its second Series B fund, roughly equal in size.
- ›Both funds back companies automating the real economy with AI.
- ›Founded in 2018, Base10 now manages $2.6 billion in total assets.
What Base10 Means by the Real Economy
The real economy refers to the everyday industries that move goods, pay workers, and build things, sectors like logistics, payroll, and construction. Base10's bet is that the largest AI opportunity sits in automating these established industries rather than in building foundation models or coding tools.
Co-founder Adeyemi Ajao sums up the firm's purpose as using technology to bring capabilities once reserved for the top 1 percent of companies to the other 99 percent. In plain terms, the goal is to give ordinary businesses access to the kind of automation and intelligence that only the largest firms used to afford.
Portfolio Companies That Fit the Pattern
Base10 points to existing holdings as proof of its approach.
- ›Nubank, a Latin American neobank serving millions of consumers.
- ›Motive, a fleet safety and management platform for trucking and logistics.
- ›WeTravel, a payments and booking tool built for travel agents.
- ›Happy Robot, a startup building AI agents for enterprises.
- ›Blank Street, a coffee chain that uses technology to run its stores.
Where the Firm Wants AI to Go Next: Vision and World Models
Beyond text-based AI, Base10 is studying vision models and world models, systems that understand images and physical space the way large language models understand words. Ajao argues that if AI could truly read every pixel and atom on a construction site, it would open the door to practical robotics.
Manufacturing intelligence is a related interest. Ajao asks whether AI might one day grasp how products are made, whether perfumes, pharmaceuticals, chips, or concrete, with the same fluency that language models grasp writing. The firm sees these capabilities as the next layer of real economy automation.
How Base10 Invests: Stage Focus and Deal Pace
The firm spreads capital from seed through Series B.
- ›From the early-stage fund: 10 to 15 seed deals and 2 to 3 Series A deals per year.
- ›From the growth fund: 3 to 4 Series B deals per year.
- ›The two funds are roughly equal in size.
- ›Investments span the full early lifecycle of a company.
A Research-First Process Backed by an Internal AI Tool
Base10 describes itself as research first, spending months analyzing a sector before writing a check. The firm tries to meet every company working in a target space and spends roughly half its time with businesses that are not even raising money. About 90 percent of its investments trace back to that research rather than inbound pitches.
To keep up, Base10 built an internal AI system called Base11 to classify companies and automate parts of the research work. Even so, Ajao says the actual decision-making is more human than ever, meaning more time spent understanding founders as people and talking to their customers. He also notes that competition among venture firms is higher than ever, which forces every firm to explain more clearly why a founder should partner with them.
Giving Back: The Advancement Initiative
Base10 ties part of its profits to education funding.
- ›The firm donates up to 50 percent of its carried interest, the share of investment profits that goes to the fund's managers.
- ›The money supports financial aid at underfunded colleges and universities.
- ›The program is called the Advancement Initiative.
Frequently Asked Questions
How much did Base10 Partners raise and across how many funds?
Base10 closed two funds totaling $850 million: an early-stage fund covering seed and Series A, and a separate Series B growth fund. The two vehicles are roughly equal in size.
What is the 'real economy' that Base10 invests in?
The real economy refers to traditional, everyday industries such as logistics, payroll, and construction. Base10 backs companies using AI to automate these sectors rather than firms building foundation models or developer tools.
How much does Base10 now manage in total?
After this raise, Base10 manages $2.6 billion in total assets. The firm was founded in 2018 by co-founders Adeyemi Ajao and TJ Nahigian.
What is Base11 and does AI make Base10's investment decisions?
Base11 is the firm's internal AI system for classifying companies and automating research. Ajao says it supports the work, but final investment decisions stay human-led and depend on understanding founders and their customers.
What is the Advancement Initiative?
It is Base10's giving program, through which the firm donates up to 50 percent of its carried interest to underfunded colleges and universities to support financial aid.
Base10's $850 million raise signals growing conviction that the next wave of AI value lies in automating the industries that keep daily commerce running. With $2.6 billion under management and a research-driven process, the firm is positioning itself to fund real economy automation from seed through Series B.
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