Menlo Ventures announced $3 billion in new funds on Tuesday, the largest raise in its 50-year history, driven largely by its AI portfolio, especially Anthropic. The venture firm's stake in the model maker is now worth about $14 billion, according to sources close to the matter. This spectacular return has enabled Menlo to attract massive capital commitments.
The $750 million bet that changed the game in 2024
To understand the scale of this achievement, one must go back to 2024, when Menlo Ventures decided to lead Anthropic's Series D with a $750 million investment. That round quadrupled the startup's valuation to $18.4 billion at the time. The move was considered risky, not so much for Anthropic's potential — already on a strong trajectory after a $4 billion deal with Amazon — but for the financing method. The venture world was just recovering from the post-pandemic VC winter, and few were willing to write such large checks. Menlo structured the bulk of the deal, about $500 million, as a Special Purpose Vehicle, pooling money from multiple sources for a single transaction. The remaining $250 million came from its own fund and insider contributions.
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SPVs became common but also a target for scams
Since then, AI SPVs have become commonplace, with Anthropic a particular target. So much so that the company recently issued a warning against all unauthorized SPVs and secondary markets claiming to sell its stock, calling them scams. But for those who invested in Menlo's authorized 2024 SPV, the aggressive push paid off handsomely. Menlo went on to invest in Anthropic's subsequent Series E and F rounds.
The Anthology fund: $250 million for early-stage AI startups
Beyond direct investment, Menlo launched a $100 million startup fund with Anthropic in 2024, named Anthology. That fund has since grown to about $250 million deployed capital, backing over 60 companies with access to Anthropic leaders and credits for Claude. Exits already include Graphite acquired by Cursor and Astrix Security acquired by Cisco. The fund has allowed Menlo to stay at the pulse of early AI innovation, building a strong reputation as an AI investor with portfolio stars like OpenRouter, Higgsfield, Lovable, and OpenEvidence. Oracle also bet big on AI by cutting thousands of jobs to fund the sector, a sign of the relentless investment race. For more on the implications for US research, see MIT's analysis of impact on Italian SMEs. External source: Anthropic on Wikipedia.
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