Benchmark Launches First Late-Stage Fund at $1.25 Billion

Benchmark Capital, one of Silicon Valley’s most prominent venture firms, has announced the close of two new funds totaling $2 billion. This is the first time in the firm’s history that it has expanded beyond its traditional model of funds sized around $425 million. The majority of the capital—$1.25 billion—is earmarked for a growth-stage fund, enabling Benchmark to participate in large funding rounds for AI companies.

Historically, Benchmark focused on early-stage investments, typically at the Series A level, and took significant stakes in startups (up to 20%). However, the rise of capital-intensive AI projects like Anthropic and OpenAI has compelled the firm to adapt. The new growth fund will allow Benchmark to engage in late-stage rounds requiring hundreds of millions of dollars.

In recent years, Benchmark has also broadened its geographic investment scope, backing startups like Gumloop and Monaco at the Series B stage. The firm’s partners emphasize that building long-term relationships with founders remains a priority, regardless of a company’s stage. The team has also evolved, with new partners joining, including Jack Altman, brother of OpenAI CEO Sam Altman.