Key facts
- Menlo Ventures raised $3 billion, its largest fund in 50 years.
- The fund's performance is heavily influenced by its AI investments, especially Anthropic.
- Menlo's stake in Anthropic is now valued at approximately $14 billion.
- Menlo Ventures led Anthropic's Series D round in 2024 with a $750 million investment.
- The Anthology fund, a $100 million startup fund with Anthropic, has deployed nearly $250 million.
- The Anthology fund has supported over 60 companies and generated early returns.
Menlo Ventures has announced the closing of a $3 billion fund, marking the largest capital raise in its 50-year history. The significant influx of capital is largely attributed to the firm's successful investments in artificial intelligence, most notably its substantial stake in Anthropic. Sources indicate that Menlo's investment in the AI model maker is now valued at approximately $14 billion.
In 2024, Menlo Ventures made a substantial, "bet-the-firm" investment of $750 million in Anthropic's Series D funding round, which quadrupled the startup's valuation to $18.4 billion. This move was considered bold given the challenging venture capital climate following the post-pandemic downturn, with larger firms like SoftBank and Tiger Global still recovering. Menlo structured the majority of this investment, around $500 million, through a special purpose vehicle (SPV) and contributed the remaining $250 million from its own funds and insider contributions.
Menlo Ventures continued to invest in Anthropic's subsequent Series E and F rounds. Furthermore, the firm collaborated with Anthropic to launch the $100 million Anthology fund in 2024, which has since deployed nearly $250 million to over 60 companies. This fund has not only supported AI startups with resources like access to Claude credits but has also generated early returns through acquisitions such as Graphite by Cursor and Astrix Security by Cisco. The firm's focus on AI startups has solidified its reputation in the sector, with a portfolio including companies like OpenRouter and Higgsfield.