Disruptive launches a $10B fund to back late-stage startups in AI and defense

TechCrunch reports that the Dallas investment firm Disruptive announced a $10 billion fund on Tuesday to back at least 10 late-stage companies. The firm plans to write checks of up to $1 billion through what stands as one of the biggest fundraises of the year so far, targeting capital-intensive fields like AI and defense.

Key takeaways

• Disruptive announced a $10 billion fund to back at least 10 late-stage companies.
• The vehicle is the largest venture fund raised in Texas history, according to the Dallas Business Journal.
• The firm was founded in 2012 by Alex Davis.
• Past bets by the firm include Palantir, Airbnb, and Spotify.

What is the Disruptive fund aiming to back?

TechCrunch notes that the new vehicle aims to back the capital-intensive fields of AI and defense. The Wall Street Journal first reported earlier this month that the firm was seeking to raise this capital and had already secured at least $7.5 billion in commitments by then. The Dallas-based investment firm has previously poured money into startups like chip maker Groq and AI voice-generation firm ElevenLabs.

Details on the investment firm strategy

This initiative marks technically the first blind-pool fund for the organization, which means investors commit money without knowing which specific companies it will back. Until now, the business raised money through deal-by-deal special purpose vehicles. According to Bloomberg, the firm told limited partners it has returned more than $6 billion on roughly $1.9 billion poured into startups over the years.

What happens next?

The firm founded in 2012 by Alex Davis will now direct its massive capital pool toward at least 10 late-stage companies with investments reaching up to $1 billion per check. Founders operating in heavy industries like AI and defense stand to draw massive financial backing as this huge vehicle deploys its resources.