Menlo Ventures Raises Record $3B Fund Backed by Anthropic Bet
Photo: TechCrunch
Quick answer
Menlo Ventures secured a record $3B fund, largely fueled by early investments in Anthropic, whose valuation surged to $14B. The $750M bet in 2024 proved highly lucrative, reinforcing Menlo’s leadership in the AI space.
U.S.-based venture capital firm Menlo Ventures announced the closure of its largest-ever fund at $3 billion—a record for the 50-year-old company. The primary catalyst for this achievement was its investments in Anthropic, an AI model developer whose current valuation has reached $14 billion, according to Bloomberg.
In 2024, Menlo Ventures made a high-stakes bet on Anthropic by committing $750 million to its Series D funding round, a move that appeared risky at the time. The capital was raised through a Special Purpose Vehicle (SPV), which attracted $500 million from external investors alongside $250 million from the firm’s own resources. The venture market was still recovering from a downturn, making such large-scale deals uncommon.
The investment in Anthropic not only paid off but also strengthened Menlo Ventures’ foothold in the artificial intelligence sector. In 2024, the firms launched Anthology, a $100 million startup fund that later expanded to $250 million. The initiative supports over 60 companies, including startups acquired by industry giants like Graphite (acquired by Cursor) and Astrix Security (purchased by Cisco).
Anthropic’s success has cemented Menlo Ventures’ reputation as a key player in the AI space. The fund’s portfolio includes high-potential startups such as OpenRouter, Higgsfield, and Legora, underscoring its expertise in artificial intelligence.
Common questions
- Why were Menlo Ventures' investments in Anthropic so successful?
- Menlo Ventures invested $750M in Anthropic at an early stage when the startup lacked a finalized product. The company’s valuation later surged to $14B, and subsequent funding rounds generated substantial returns for the fund.
- What is an SPV, and how did Menlo Ventures use it?
- An SPV (Special Purpose Vehicle) is a temporary investment structure designed to pool capital for a specific deal. Menlo Ventures leveraged an SPV to raise $500M from external investors, supplementing its own $250M to fund the Anthropic investment.
- What joint projects has Menlo Ventures launched with Anthropic?
- In 2024, the firms co-launched Anthology, a $100M startup fund that later expanded to $250M. The fund supports over 60 AI startups, providing access to Anthropic’s technologies and team expertise.
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