Cadenza is an early-stage venture capital firm based in San Francisco and New York that has carved out a specific niche at the intersection of decentralized infrastructure and artificial intelligence. Founded in 2018, the firm initially gained traction through investments in blockchain and fintech before formalizing its commitment to the AI sector with a dedicated $50 million fund launched in late 2024. This fund targets the foundational layers of the AI stack, specifically focusing on infrastructure and enterprise applications that aim to replace legacy software through increased workforce efficiency.

The infrastructure layer and Together.AI

Cadenza’s relevance to the modern AI ecosystem is best illustrated by its early support of companies like Together.AI. In the current market, where access to compute is a primary bottleneck for both training and inference, Together.AI provides the underlying GPU clusters and cloud infrastructure necessary for developers to deploy models at scale. By backing these types of hardware and software providers, Cadenza positions itself as a facilitator for the broader agent ecosystem. Without the high-performance inference capabilities provided by their portfolio companies, the low-latency requirements for autonomous agents would be difficult to meet.

Open source and Nous Research

The firm also maintains a presence in the open-source model development space through its investment in Nous Research. As the ecosystem shifts toward specialized, smaller models that can be fine-tuned for specific agentic tasks, groups like Nous Research provide the necessary research and fine-tuning expertise. Their work on models like the Hermes series has become a staple for developers who require steerable, reliable LLMs that do not rely on the restrictive APIs of closed-source providers. Cadenza’s backing of these initiatives suggests a strategy that favors a decentralized, open-source approach to AI development rather than total reliance on central incumbents.

Market positioning and the $50 million fund

Managed by Max Shapiro, Cadenza operates with a focus on valuation discipline, a phrase the firm uses to distinguish itself from the broader frenzy often seen in Silicon Valley AI investing. The $50 million AI Venture Fund is anchored by Van Eck Associates and includes participation from entities like Solana and TRON, highlighting the firm’s belief that AI and decentralized networks will eventually converge. They look for startups that can displace incumbent enterprise software providers, specifically looking for companies that create measurable workforce efficiencies rather than just incremental technological improvements.

Strategic geography and network

With offices in both San Francisco and New York, Cadenza bridges the gap between the West Coast’s technical talent and the East Coast’s financial institutions and enterprise customers. This geographic footprint is reflected in their portfolio, which spans from high-performance hardware solutions like Tensorwave to consumer-facing crypto platforms like FalconX. Their approach is less about finding AI for its own sake and more about identifying the companies that provide the essential services—compute, research, and data—that the next generation of autonomous software will require to function effectively.