Menlo Ventures secures $3 billion fund, largest in 50-year history
The venture capital firm’s aggressive early positioning in the artificial intelligence sector, particularly through its stake in Anthropic, has underpinned the firm’s most significant fundraising milestone to date.
Menlo Ventures has announced the successful raising of $3 billion in new capital, marking the largest fund raise in the firm’s 50-year history. The substantial increase in assets under management is attributed primarily to the strong performance of the firm’s artificial intelligence portfolio, with its stake in Anthropic now valued at approximately $14 billion according to sources cited by Bloomberg.
The capital raise follows a pivotal moment in 2024 when Menlo Ventures led Anthropic’s Series D round with a $750 million investment. That transaction quadrupled the startup’s valuation to $18.4 billion and was structured with approximately $500 million raised via a special purpose vehicle (SPV), while the remaining $250 million was contributed from Menlo’s own fund and insiders. The firm subsequently participated in Anthropic’s Series E and F rounds, solidifying its position as a key backer of the model maker founded by former OpenAI researchers Dario and Daniela Amodei.
Beyond its direct investments in Anthropic, Menlo has expanded its AI footprint through the Anthology fund, launched in partnership with the company in 2024. Initially capitalised at $100 million, the fund has deployed closer to $250 million to date, backing over 60 companies. Notable exits from the portfolio include Graphite, which was acquired by Cursor, and Astrix Security, acquired by Cisco. The fund provides portfolio companies with access to Anthropic leadership and credits for the Claude model, allowing Menlo to maintain an early-stage presence in the sector.
The firm’s current AI portfolio extends beyond Anthropic to include companies such as OpenRouter, Higgsfield, Legora, Lovable, and OpenEvidence. This breadth of exposure has helped Menlo establish a reputation as a dedicated AI investor, leveraging its early bets to identify trends and technologies at the forefront of the industry. The success of these investments comes as the broader venture capital market continues to recover from a post-pandemic downturn, with major firms like SoftBank and Tiger Global still navigating the aftermath of previous losses.
The use of SPVs for large AI investments has become increasingly common since 2024, a trend that has drawn scrutiny from some industry players. Anthropic recently issued warnings regarding unauthorised SPVs and secondary markets claiming to sell its stock, labelling such activities as scams. However, Menlo’s authorised 2024 deal structure has proven highly lucrative, validating the firm’s strategy and enabling the current $3 billion raise.
