Ondine Capital, a venture capital firm focused on frontier technologies, has announced the first close of its third U.S. dollar-denominated venture capital fund, securing commitments from institutional and strategic investors, including several leading semiconductor companies in Taiwan. The firm will use Ondine Capital Fund III to invest in emerging businesses across artificial intelligence, semiconductors, AI infrastructure, enterprise software, and physical AI.
The fund builds on Ondine Capital’s experience investing in semiconductor technologies and deep-tech companies, with an expanded focus on businesses developing technologies across the AI ecosystem.
Its investment strategy encompasses AI foundation models, next-generation semiconductor architectures, computing infrastructure, AI-native applications, and intelligent systems operating in physical environments.
The participation of strategic semiconductor investors is expected to strengthen Ondine Capital’s ability to connect portfolio companies with industrial partners and technology expertise.
Ondine Capital has already identified several investments within Fund III’s early portfolio, including Recursive Superintelligence, Bot Auto, and Salience Labs.
Recursive Superintelligence is developing AI systems focused on recursive self-improvement. The company was founded by Richard Socher, the former Chief Scientist at Salesforce, and includes researchers with experience at OpenAI, Google, and Meta.
The startup recently raised $650 million at a $4 billion pre-money valuation in a financing round led by Google Ventures, with participation from Nvidia and AMD.
Another portfolio company, Bot Auto, is developing autonomous freight transportation technology.
Founded by Xiaodi Hou, the former co-founder and Chief Technology Officer of TuSimple, the Houston-based company focuses on applying physical AI to commercial trucking operations.
Bot Auto recently partnered with Ryan Transportation to launch driverless freight operations along the Houston–Dallas corridor, highlighting the potential for autonomous systems in logistics and transportation.
Fund III also includes Salience Labs, a developer of silicon-photonics optical switching technology for AI data centers.
Founded by Vaysh Kewada and Johannes Feldmann, Salience Labs develops optical technologies intended to improve data movement and connectivity within advanced computing infrastructure.
The company recently completed a $125 million financing round led by Bullhound Capital, with strategic participation from AMD Ventures and Intel Capital. It is also working with Tower Semiconductor.
Alongside the fund’s first close, Ondine Capital announced the appointment of Brian Yen as Partner.
Yen previously served as Principal and Head of the Taipei Office at Headline Asia, where he established investment relationships across Japan, Taiwan, and Southeast Asia.
His investment experience includes consumer technology, agentic services, and physical AI, with investments involving respond.io, forest inc., Braid, and iMotorbike.
At Ondine Capital, Yen will focus on identifying and supporting early-stage companies developing intelligent software and physical AI platforms.
His appointment is intended to expand the firm’s international investment sourcing capabilities and strengthen its relationships with entrepreneurs across Asian and global technology markets.
Ondine Capital continues to evaluate investment opportunities across the AI and semiconductor sectors, with an emphasis on companies developing foundational technologies and commercially applicable solutions.
Fund III’s initial portfolio reflects this strategy through investments spanning AI research, autonomous transportation, and advanced semiconductor infrastructure.
The firm intends to use its relationships with semiconductor manufacturers, industrial partners, and technology investors to support portfolio companies as they develop products and expand into international markets.
KEY QUOTE:
“The convergence of AI and semiconductors is unleashing unprecedented opportunities across global tech. As these technologies mature, we anticipate monumental value creation throughout the entire stack. Through Fund III, we look forward to empowering visionary founders who are shaping the future of computing and industry applications.”
Brian Yen, Partner At Ondine Capital