Menlo Ventures has successfully raised $1.35 billion in new capital, which it aims to use to "support the forthcoming generation of AI startups," as announced today by the venture capital firm.
The firm is notably optimistic about the future of artificial intelligence and has already invested in notable companies such as Abnormal, Anthropic, Cleanlab, Pinecone, and Typeface.
“Not every investment needs to focus solely on AI, but we believe that's where the most groundbreaking innovations will emerge,” said Venky Ganesan, a partner at Menlo Ventures, in an emailed statement. “As AI technology continues to evolve, we anticipate that AI-driven tools and services will become central to enhancing our productivity and effectiveness. Eventually, AI will transition from a novel concept to an expected, everyday collaborator. Many existing companies are quickly integrating AI capabilities to maintain their competitive edge in this rapidly evolving AI landscape.”
With this latest funding, Menlo has raised over $3.8 billion across eight fund groups, having returned $5.2 billion to its limited partners (LPs). The new capital will be allocated through the firm's flagship venture fund, Menlo XVI, which specializes in seed to Series A investments, as well as Menlo Inflection III, which targets Series B and later stages, along with their affiliated funds.
In July 2022, the Bay Area firm, recognized for its early investments in companies like Uber and Warby Parker, informed regulators about securing $761.4 million for its third “special opportunities” fund. Menlo also closed Fund XV, raising $500 million in October 2020, and currently manages $5.6 billion.
Over the years, Menlo Ventures has seen 80 of its portfolio companies exit, including 15 that went public, featuring names like Getaround, Carbonite, Gilead, Roku, and Rover. The firm has made seed and early-stage investments in 24 unicorns across sectors such as enterprise, consumer, and healthcare, and has witnessed 65 of its portfolio companies being acquired, including StrataCam (acquired by Cisco), Tenor (acquired by Google), and PillPack (acquired by Amazon).
Recent investments by Menlo include leading Finch’s $40 million Series B raise and participating in Sana Labs’ $34 million round. Additionally, Menlo was involved in AI standout Anthropic's $450 million fundraising round in May.
Looking ahead, the firm noted in a blog post, “AI signifies a transformative shift poised to add trillions of dollars in value to the global economy, and Menlo is ready to help shape this future.” Nonetheless, it plans to continue investing in healthcare/digital health, consumer products, cloud infrastructure, cybersecurity, fintech, and SaaS startups as well.
Menlo Ventures is not alone in raising substantial funds. In October, Greylock Partners announced two new initiatives: a $1 billion early-stage fund—its 17th—and Greylock Edge, a program designed to assist founders in developing their ideas into companies with early revenue and market fit.
This story was updated post-publication to include comments and additional information from Menlo Ventures.
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