Ascend

Lake Union is a small lake that tells a big story.

By: Nate Bek Conventional wisdom holds that startups function as a safety net in times of layoffs. As big companies shed workers, fast-growing newcomers are expected to absorb displaced talent. It is a comforting narrative, and one that has resurfaced as Big Tech layoffs extended into early 2026,

AZX is a vertical AI platform for critical infrastructure. Its $6 million pre-Seed round included investment from AI2 Incubator, SFV, Founders’ Co-op, Kompas, Powerhouse Ventures, and Stepchange Ventures.

Govstream.ai builds AI-native permitting tools for local governments. Its $3.6 million Seed round was led by 47th Street Partners, with participation from Nellore Capital.

Prime Intellect acquires Moondream, a Seattle-founded startup that makes small, open-source image-understanding models. Its co-founders Jay Allen and Vik Korrapati join Prime Intellect to lead inference work and expand its efforts in vision and computer-using AI agents. Moondream’s Photon inference engine compiles each model into a GPU megakernel to reduce idle time between tasks. Prime Intellect keeps the Moondream name for efficient models and offers its latest model, Moondream 3.1, through its inference service.

Oct 2026 · GeekWireNews article

Seattle venture firm Ascend promotes Nate Bek to principal after he joined as an associate in January 2024 and most recently served as senior associate and head of research. Microsoft architect Brandon Paddock leaves to start an AI software company after leading Word’s Agent Mode, while Technology Access Foundation names Donya Loyd Kemp director of TransformED. The roundup also notes Jay Carney’s appointment as SV Angel general partner and head of public policy and communications.

Sep 2026 · GeekWireNews article

Ascend closes a $25 million second fund to invest in pre-seed AI and machine-learning startups, largely in the Pacific Northwest. The Seattle firm raised the capital entirely from individuals through two vehicles: one with $22.5 million and another with $2.5 million from existing portfolio company founders. Founder and solo GP Kirby Winfield says the fund moves away from brands and marketplaces, focusing on startups that use AI to solve customer problems.

May 2023 · TechCrunchNews article