After Betting Big on Anthropic, Menlo Ventures Raises Record $3 Billion Fund
Menlo Ventures has announced a $3 billion fund, the largest in its 50-year history, largely driven by its AI portfolio, particularly its stake in Anthropic, now worth about $14 billion.
Menlo Ventures announced on Tuesday that it has raised $3 billion in new funds, the largest raise in the firm's 50-year history. The success is largely attributed to its investments in artificial intelligence, especially its bet on Anthropic. According to sources, Menlo's stake in the AI model maker is now valued at approximately $14 billion.
In 2024, Menlo took a bold step by investing $750 million in Anthropic, leading its Series D round. That investment quadrupled Anthropic's valuation to $18.4 billion at the time. While the investment itself was not extremely risky, the way Menlo raised the capital was notable. The firm structured about $500 million of the deal through a special purpose vehicle (SPV), pooling money from multiple sources, while contributing $250 million from its own fund and insiders.
Since then, AI-focused SPVs have become commonplace, with Anthropic even warning against unauthorized SPVs claiming to sell its stock. For Menlo's investors in the authorized 2024 deal, the aggressive move has paid off. Menlo later participated in Anthropic's Series E and F rounds.
Additionally, in 2024, Menlo launched a $100 million startup fund with Anthropic called Anthology, which has since grown to about $250 million deployed. The fund has backed over 60 companies, offering them access to Anthropic leaders and Claude credits, and has already generated returns, including the acquisitions of Graphite by Cursor and Astrix Security by Cisco. Menlo's broader AI portfolio now includes startups like OpenRouter, Higgsfield, and Lovable.
