After betting the firm on Anthropic, Menlo Ventures raises victorious $3B fund

Menlo Ventures has made headlines by announcing a staggering $3 billion in fundraising, which marks the largest amount in the firm’s 50-year history. This impressive feat is largely attributed to its successful investments in artificial intelligence, particularly in the company Anthropic. Sources have revealed that Menlo's stake in Anthropic is now valued at approximately $14 billion. Back in 2024, the firm took a significant risk by making a $750 million investment in Anthropic, which was pivotal in leading the startup's Series D funding round. This investment dramatically increased the company’s valuation from $4.6 billion to an astounding $18.4 billion. At the time of the investment, Menlo had already established itself as an early backer of Anthropic, even before it had launched a product. By 2024, Anthropic had gained traction, securing a massive $4 billion deal with Amazon and attracting the attention of various venture capitalists. Founded by former OpenAI researchers, including siblings Dario and Daniela Amodei, Anthropic quickly became recognized as a promising AI startup. The method by which Menlo secured the necessary capital was particularly noteworthy. In an environment where many venture capital firms were still recovering from the pandemic’s impact, Menlo managed to structure their investment through a special purpose vehicle (SPV) that pooled resources from multiple investors. This approach allowed Menlo to contribute $250 million from its own funds while raising an additional $500 million through the SPV, culminating in a total of $750 million raised. Since then, the trend of AI-focused SPVs has surged, with Anthropic at the center of attention. The company even issued a warning last month regarding unauthorized SPVs and secondary markets, branding them as scams. For those who participated in Menlo’s sanctioned investment, the rewards have been substantial. Menlo Ventures continued its support for Anthropic by participating in the Series E and F funding rounds and launching a $100 million startup fund named Anthology. This fund has since expanded to deploy nearly $250 million across over 60 companies, providing them with valuable resources such as access to Anthropic’s leadership and technology credits. Notable successes from this fund include Graphite, which was acquired by Cursor, and Astrix Security, acquired by Cisco. Through these initiatives, Menlo Ventures has solidified its reputation as a key player in the AI investment landscape, boasting a portfolio that includes rising stars like OpenRouter, Higgsfield, Legora, and more.