Disruptive raises US$10 billion fund for AI, defense and software startups
The Dallas venture capital firm plans to invest around US$1 billion each in about 10 late-stage companies.
Dallas-based venture capital firm Disruptive has raised US$10 billion for investments in artificial intelligence, defense and software businesses, Bloomberg reported. The fundraising roughly doubles the assets under its management.
The firm intends to spread the capital across about 10 late-stage companies, allocating around US$1 billion to each. New financing rounds will receive most of the money, with a smaller portion used to purchase existing investors’ shares.
The pooled fund replaces Disruptive’s previous approach of collecting money separately for individual investments through special purpose vehicles, or SPVs. Under the new structure, the firm will decide how to deploy the capital.
Founder Alex Davis told Bloomberg that startup leaders had become frustrated with SPVs because the identities of their backers are often unclear. He also argued that larger investments are necessary as successful businesses remain privately held for longer.
Founded by Davis in 2012, Disruptive has about 30 employees. Its investors include universities, sovereign wealth funds and endowments, while its portfolio spans ElevenLabs, Databricks and defense drone company Shield AI.
An investor letter sent earlier this year said Disruptive had returned more than US$6 billion from investments of about US$1.9 billion, according to documents Bloomberg reviewed. The firm declined to discuss its returns.
