Benchmark Raises $2 Billion Fund for First Growth Stage

Silicon Valley's legendary venture firm Benchmark Capital is breaking with its long-standing traditions to expand its investment scope. An early investor in giants like eBay, Snap, Uber, and Twitter, the firm typically capped its fund size at $425 million. However, according to The Wall Street Journal, the company has raised a total of $2 billion for two new funds for the first time, with $1.25 billion allocated to late-stage (growth stage) projects. Techcrunch.com reports on this. reports .

For decades, Benchmark has adhered to its selective strategy, aiming to secure at least a 20% stake in every startup. However, the rapid growth in artificial intelligence (AI) and the hundreds of millions of dollars in investment rounds by companies like Anthropic or OpenAI began to pose challenges for Benchmark's smaller funds. The newly established $750 million early-stage fund gives the company more flexibility in the current market, where startup valuations have surged.

In recent months, the company has shifted its strategy, investing not only in Series A but also in Series B AI projects like Gumloop and Monaco. Benchmark partner Everett Randle noted that the firm is ready to build deep relationships with entrepreneurs at any early stage of a company's life. These changes demonstrate the company's desire to adapt to market demands.

This strategic pivot was also spurred by the successful IPO of chipmaker Cerebras. Benchmark participated in the company's pre-IPO round, generating $3.25 billion in returns. Under the new growth fund, the company plans to make 5-6 major investments in both existing portfolio companies and promising new startups.

Alongside its investment policy, Benchmark has also seen changes in its management team. In the past two years, Miles Grimshaw returned to Thrive Capital, and the firm's only female partner, Sarah Tavel, was promoted to venture partner. Additionally, Victor Lazarte left the team to launch his own personal venture firm.