Nate Bek
By Nate
See all 15Seattle’s ‘Third Act’: VCs Say Local Superstars Are Deep-Tech Startups Building Rockets, Geothermal Plants and Autonomous Vehicles
Two Seattle venture capitalists argue that the city’s next wave of superstar startups are already here but focus on deep tech—intelligent machines and physical products like rockets, geothermal plants and autonomous off-road vehicles—rather than pure software. They frame this shift as Seattle’s "Third Act," building on maritime/aerospace roots (Act I) and the software/cloud boom (Act II) to combine hardware and software using local infrastructure and talent.
Ascend series: Seattle’s ‘Third Act’ — physical AI startups on Lake Union signal a shift toward software-enabled hardware
The piece reports from Lake Union to argue Seattle is entering a third industrial era—'physical AI'—where hardware-enabled intelligent machines mix with legacy maritime and aerospace industries, exemplified by startups like Overland, Anduril, Brinc, and Endurance Energy. The authors say Seattle has the talent, infrastructure, and institutions to lead but needs more risk-taking, investor capital for hardware, and pro-innovation policy to fully capitalize on this shift.
Ascend survey: 89% of ~70 early-stage VC-backed startups use AI, many reporting 25–60% smaller teams than in 2021
An Ascend survey of ~70 mostly early-stage, West Coast VC-backed startups finds 89% use AI—often multiple models—to reduce headcount needs and hiring plans, with many founders reporting 25–60% fewer employees required versus 2021 and engineering, marketing, and customer support most affected.
