NovaWave Capital, the Silicon Valley-based VC fund, announced this week that it’s expanding its AI investment and venture-building platform, announcing new limited partners and the launch of a dedicated AI venture studio in Arizona.
The fund is managed by Aurion Capital, which operates globally across offices in Silicon Valley, Seoul, Dubai, and Abu Dhabi.
According to the Menlo Park–based firm, AZ Venture Capital Inc. and Mayo Global have joined NovaWave Fund I Generation. At the same time, NovaWave is partnering with the State of Arizona to launch WaveX, an AI-focused venture studio looking to support startups in healthcare, energy, sports, and media.
The move reflects a broader trend among venture firms to pair capital with hands-on company building—especially in regions that are pushing aggressively to attract next-generation technology investment.
NovaWave Capital was founded with backing from LG Electronics through LG NOVA, the company’s North America Innovation Center. LG serves as the fund’s anchor investor, giving NovaWave portfolio companies potential pathways to enterprise partnerships and global commercialization—an increasingly attractive value proposition as startups face tighter funding markets.
“We’re focused on building AI-first companies that can move quickly from concept to scale,” said founding managing partner ‘Tonton’ Ali Diallo (article’s featured photo). “That means combining Silicon Valley expertise with regions that are hungry for innovation, talent, and new economic engines.”
The new venture studio is designed to provide more than capital, with companies entering having access to venture-building resources, product development support, and regional acceleration partnerships, along with sector expertise. NovaWave says the studio model helps compress the time it takes to validate ideas and bring products to market.
Arizona officials framed the collaboration as a signal of the state’s growing role in emerging technologies. Governor Katie Hobbs said the venture studio strengthens Arizona’s position in AI advanced innovation.
“Arizona is proud to welcome NovaWave Capital’s venture studio to our state, a powerful addition to our
thriving innovation ecosystem,” said Arizona Governor, Katie Hobbs.
“This prominent initiative reflects Arizona’s growing global importance in advanced technologies and our commitment to fostering next-gen innovations across artificial intelligence, energy, advanced manufacturing, and more.”
