Dallas Investment Firm Disruptive Raises $10 Billion Fund
Disruptive, a Dallas-based US investment firm, has launched a $10 billion fund to back at least 10 late-stage companies, focusing on AI and defense. It is reported to be the largest venture fund in Texas history.
Disruptive, an investment firm based in Dallas, Texas, announced on Tuesday a $10 billion fund that will back at least 10 late-stage companies, with individual checks of up to $1 billion. The fund targets capital-intensive sectors, namely artificial intelligence and defense, and ranks among the largest fundraises of the year so far.
What makes the fund different
Technically, this is the firm's first blind-pool fund, meaning investors commit money without knowing which companies it will support. Until now, Disruptive raised capital through separate special purpose vehicles set up deal by deal.
The Wall Street Journal reported earlier this month that the firm was seeking to raise the fund and had already secured at least $7.5 billion in capital commitments by then. According to the Dallas Business Journal, the new vehicle is the largest venture fund raised in Texas history.
About the firm
Disruptive was founded in 2012 by Alex Davis, grandson of billionaire oil magnate Marvin Davis. Its earlier investments include data analytics company Palantir, home-rental platform Airbnb and music streaming service Spotify. In recent years it has drawn attention by investing in chip startup Groq and AI voice-generation startup ElevenLabs.
Bloomberg reported that the firm told its limited partners (LPs), the investors in its funds, that it has returned more than $6 billion on the roughly $1.9 billion it has put into startups.
