Benchmark launches $2 B growth initiative, expanding beyond its traditional fund size

Benchmark Capital, the legendary Silicon Valley venture firm behind early bets on eBay, Snap, Uber and Twitter, is abandoning its long‑standing practice of capping funds at roughly $425 million. The firm has now secured $2 billion in commitments across two new vehicles, including a $1.25 billion fund focused on later‑stage investments, according to the Wall Street Journal.

While many venture firms have swelled to multibillion‑dollar sizes over the past decade, Benchmark historically stayed small, taking large—typically 20%—ownership stakes in early‑stage companies to maximize returns for its limited partners.

The relatively modest fund size limited Benchmark’s ability to back capital‑intensive AI startups, especially foundation‑model builders that raise hundreds of millions. Consequently, the firm has not invested in Anthropic, OpenAI, or other heavyweight AI labs such as Periodic Labs, Reflection AI, or Recursive Superintelligence.

When Benchmark does place AI bets, the outcomes have been mixed. The firm led a $75 million round in Manus, a Singapore‑based AI‑agent platform that reached $100 million in annual recurring revenue within eight months. Although Meta agreed to acquire Manus for roughly $2 billion late last year, Chinese regulators blocked the deal in April over alleged export‑control violations, leaving Benchmark’s stake in limbo.

Benchmark’s new $750 million early‑stage fund gives it more flexibility as early‑stage valuations continue to climb. Historically focused on Series A rounds, the firm now plans to write checks across a broader range of early stages.

Recently, Benchmark backed two Series B companies: Gumloop, a platform that enables enterprises to create AI agents without coding, and Monaco, an AI‑native sales and CRM solution.

General partner Everett Randle told TechCrunch that Benchmark seeks “meaningful and deep relationships with entrepreneurs,” which can begin early in a company’s lifecycle—at seed, Series A, or Series B.

The firm dipped its toe into late‑stage investing by raising a $225 million special‑purpose vehicle to participate in a $1 billion pre‑IPO round for Cerebras, as TechCrunch reported. Benchmark led Cerebras’ Series A in 2016; the chipmaker’s recent IPO returned $3.25 billion to Benchmark at the offering price.

That windfall spurred the creation of a dedicated growth fund, which will make five to six large investments in both existing portfolio companies and new startups, according to a source familiar with Benchmark’s strategy.

The new funds coincide with a broader reshuffle of Benchmark’s partnership roster. In 2024, Miles Grimshaw left to rejoin Thrive Capital. Last year, Sarah Tavel—Benchmark’s first and only female general partner—transitioned to a venture‑partner role, and Victor Lazarte departed to launch his own VC firm.

To replenish its ranks, Benchmark added two high‑profile partners: Everett Randle, recruited from Kleiner Perkins, and Jack Altman, brother of OpenAI CEO Sam Altman. These changes suggest that even a firm once defined by its resistance to growth now sees the AI era as demanding more capital, broader stage participation, and fresh perspectives at the partner table.

Source link