Benchmark raises first-ever growth fund in $2B capital raise
Original: Benchmark raises its first-ever growth fund as part of $2B capital raise
Why This Matters
Benchmark's fund expansion reflects VC adaptation to capital-intensive AI era.
Benchmark Capital raised $2 billion across two new funds, including a $1.25 billion growth fund for later-stage investments. The Silicon Valley VC firm broke its tradition of maintaining $425 million funds focused only on early-stage startups.
Benchmark Capital, known for early investments in eBay, Snap, Uber, and X, closed $2 billion in commitments across two funds: a $750 million early-stage fund and $1.25 billion growth fund. The firm previously maintained funds around $425 million for over two decades, taking 20% stakes in young startups. The expansion addresses challenges investing in capital-intensive AI companies requiring hundreds of millions in funding. Benchmark missed investments in Anthropic and OpenAI but led a $75 million round in Manus, an AI agent platform acquired by Meta for $2 billion before Chinese regulators blocked the deal. The firm's recent Cerebras investment returned $3.25 billion at IPO, prompting the dedicated growth fund creation. The new structure allows flexibility for higher early-stage valuations and Series B investments like Gumloop and Monaco.