Seligman Ventures doubles capital to $1 billion as AI boom revives hardware bets

Seligman Ventures has increased its deployable capital for its venture arm to $1 billion, less than a year after its inception, as it anticipates a surge in AI hardware, connectivity, and cybersecurity technologies driven by the artificial intelligence boom. Founded in February 2026 with an initial $500 million, the venture arm has already invested over $300 million across 14 investments in the aforementioned sectors.

This expansion comes as interest in capital-intensive hardware has resurfaced after two decades of software dominance. In the first half of 2026, U.S. and Canadian venture investments reached a record $392 billion, with $10.7 billion going toward semiconductor startups, on track to surpass last year's total.

Umesh Padval, the managing partner at Seligman Ventures, expressed astonishment at the 10 to 15 times greater deal flow than anticipated when he joined. He stated that the firm does not wish to miss out on the AI, cybersecurity, or data center train. Seligman's portfolio encompasses various components of data centers, including competitors to Nvidia, such as SambaNova, and optical manufacturers like Lumilens.

The company employs a barbell strategy, investing in both early-stage and late-stage, pre-IPO startups. They are also exploring opportunities in accelerators, networking, power, and cooling, as well as cybersecurity.

The capital increase aligns with a broader trend among public-market managers to identify technology companies earlier, as startups remain private for extended periods. Seligman Ventures takes an active role, holding six board seats and three board observer seats. This marks Paul Wick, the chief investment officer of Columbia, Seligman's technology business, second attempt at venture investing.

His earlier late-stage venture effort was discontinued following the dot-com collapse in 1997 due to insufficient board representation, third-party deal sourcing, and inadequate team selection. Wick emphasized that this time around, there are two individuals who will serve on the boards of the companies they invest in. This enhanced ability to protect and understand their private company investments sets Seligman apart from traditional venture firms.

The venture platform leverages public-market operations led by Wick, who manages a $29 billion Columbia Seligman Technology and Information Fund, along with a $7.5 billion technology hedge fund business. This structure provides Seligman Ventures with a competitive edge against conventional venture firms, as they combine private sourcing and board involvement with public-market data analysis to assess a startup's resilience against established competitors. Padval anticipates making five to 10 new investments over the next 12 months.