Startups & Funding
Two Google alumni raise $11.3M fund for enterprise AI startups
Two Google alumni have closed an $11.3 million fund, betting that enterprises will increasingly pay only for AI products that prove measurable value rather than experiments.
BAG Ventures, founded by former Google vice president Bonita Stewart and former CapitalG partner Jackson Georges Jr., has closed an $11.3 million fund after about two years of investing from it as it came together. The firm has already backed 10 companies, including software maker SXD, AI travel agent BizTrip, and agentic reasoning platform Nomadic. It invests in AI infrastructure, compute, physical and edge AI, security, governance, and vertical SaaS, with check sizes ranging from $100,000 to $500,000. The team plans to invest the rest of the fund over the next two years.
Stewart spent 17 years at Google, including nearly a decade as a vice president, and served on the board of Gradient Ventures, Google’s early-stage AI fund. She is a limited partner in the Female Founders Fund and the Operator Collective. Georges worked at GE Healthcare and Google, where he met Stewart, before becoming a partner at CapitalG, Alphabet’s growth fund. Together they co-led the angel syndicate BAG Collective, which has more than 450 members. The firm’s limited partners include Google and operators from Nvidia, Amazon, and Snowflake, totaling more than 150 limited partners.
The pair say their edge is access to the organizations founders want to sell into. “We don’t just give founders capital; we give them direct warm introductions to potential customers and hands-on go-to-market advice,” Georges said, describing the firm’s aim to close the “emerging AI divide between founders and operators.”
Georges said the “experimental sandbox” phase of enterprise AI buying is ending, with companies now paying for “deterministic solutions” that integrate into legacy workflows rather than open-ended chatbots — citing automated code review and legal-document parsing as examples. He expects enterprises to shift from per-user SaaS seats toward buying “completed jobs and outcomes driven by multi-agent workflows.” BAG Ventures is looking for technical teams that have worked together before, have a minimum viable product, at least one partner, and a clear path to monetization. Georges also pointed to demand for identity and access management for AI agents and for security tools like the one built by portfolio company Defendermate, arguing that thin wrappers around frontier-model APIs “are going to get wiped out.”
Why it matters
The fund is a bet that enterprise AI spending is consolidating around products with deep workflow integration and proprietary data — not general-purpose wrappers around frontier models.