Diffusion
About Diffusion
Venture firm that co-led Harvey's $550M Series H.
Diffusion is a newly formed venture firm based in San Francisco. Victor Lazarte and Kris Fredrickson founded it to back early- and growth-stage AI companies. The firm's website is a sparse landing page with no published team, portfolio or thesis. The founding date and fund size are not confirmed in the sources reviewed, so they are left out. Fredrickson has said on X that he first invested in Harvey at its Series B in 2023, before Diffusion's Series H.
A third-party profile describes Diffusion's stated aim as backing category-defining AI companies in large, structurally inefficient markets. It names legal services, wealth management and AI/data-center infrastructure as examples. Its disclosed deals match that description. In Harvey, a legal AI platform, Diffusion and Lightspeed Venture Partners co-led the Series H at a $15.5B valuation. Both joined as new investors. In Decade, a Brazilian AI-plus-human wealth advisory startup, Diffusion was named alongside Greenoaks and Benchmark as a lead of the seed round. The same profile lists Diffusion among six investors in a $117M round for Parallax, with no single lead named. That profile was built from press coverage rather than from the firm itself.
Diffusion has taken part in rounds from seed to late stage. Examples are the $85M Decade seed and the $550M Harvey Series H. The firm has not published its own check sizes or ownership targets. Only the total round sizes above are public.
- Harvey: AI platform for law firms, in-house legal teams and professional services. Diffusion co-led the $550M Series H with Lightspeed at a $15.5B valuation (2026).
- Decade: Brazilian startup pairing AI with human advisors for wealth management, founded by former Nubank CTO Vitor Olivier and Felipe Meneses. $85M seed round led by Greenoaks, Benchmark and Diffusion (2026).
- Parallax: Diffusion is one of six named investors in a $117M round, alongside Founders Fund, Eclipse, Lux, Greylock and General Catalyst. A third-party profile reports this, and the company's product is not described in the sources.
- f4.fund/firms/diffusion
- x.com/krisfredrickson/status/2097700501106422239
- peinsights.substack.com/p/diffusion-and-lightspeed-lead-550m
- news.crunchbase.com/venture/biggest-funding-rounds-boring-co-cognition
- dealroom.co/news/149744-legal-ai-firm-harvey-raises-550m-hits-15-5b-va
- latamlist.com/decade-raises-85m-seed-round-to-launch-ai-powered-wealth
Investing activity
Diffusion appears in 2 AI deals tracked by the AI Lounge deals desk, rounds totalling $635M, and led 2 of them. The rounds are mostly Series H+ and Seed, with a median round size of $550M. The most recent are Harvey (Series H, $550M, Sep 2026) and Decade (Seed, $85M, Aug 2026).
Diffusion most often invests alongside Lightspeed Venture Partners, Conviction, Sequoia Capital and Sapphire Ventures, and the companies it backs on AI Lounge are mostly in Legal AI and AI.
Deals
Frequently asked questions about Diffusion
Who founded Diffusion VC?
Victor Lazarte and Kris Fredrickson are named as the co-founders. The firm is based in San Francisco.
What AI companies has Diffusion invested in?
Disclosed investments include Harvey (legal AI), Decade (AI wealth advisory) and Parallax. Fredrickson also said he first invested in Harvey at its Series B in 2023.
Does Diffusion lead rounds?
Yes. It co-led Harvey's $550M Series H with Lightspeed. It was also named as a lead of Decade's $85M seed round alongside Greenoaks and Benchmark. In Parallax's round it appears among several investors with no lead named.
What check size does Diffusion write?
The firm has not published check sizes. The disclosed deals are rounds of $85M to $550M, in which Diffusion's own share is not public.
What sectors does Diffusion focus on in AI?
A third-party profile lists legal services, wealth management and AI/data-center infrastructure as examples. The firm has not published a thesis of its own.
Where is Diffusion based?
Diffusion is based in San Francisco, US.
What stage does Diffusion invest at?
In the rounds tracked on AI Lounge, Diffusion has invested at Series H+ and Seed, with a median round of $550M. Diffusion led 2 of those rounds.
Who does Diffusion co-invest with?
Diffusion's most frequent co-investors on AI Lounge are Lightspeed Venture Partners (1 deal), Conviction (1 deal), Sequoia Capital (1 deal), Sapphire Ventures (1 deal) and Elad Gil (1 deal).
How can founders reach Diffusion?
Founders on AI Lounge can see Diffusion's contact details in AI Investor Contacts (paid plans), check for a warm introduction through members who worked with the firm under Warm Paths, and add Diffusion to their Investor Pipeline to track the conversation.