Menlo Ventures has secured $1.35 billion in funding for artificial intelligence (AI) projects.
Partner Matt Murphy informed Bloomberg News on Thursday, November 16, that the new capital will be allocated to both the early-stage fund Menlo XVI and the early growth fund Women’s Inflection III.
Murphy emphasized Menlo’s increased focus on AI, highlighting its support for Anthropic. The primary investment target will be emerging AI startups rather than mature acquisitions. Despite the challenging funding landscape, Menlo’s strong track record positions it well to attract substantial investment early in the process.
Menlo’s commitment to early-stage investments has resonated with its limited partners, who recognize the firm’s dedication and strategic approach. Murphy noted that Menlo avoids the inflated valuations common in the growth market segment where they do not participate.
Over 40 venture capital firms, such as General Catalyst, Felicis Ventures, Bain Capital, IVP, Insight Partners, and Lux Capital, have pledged to ensure responsible development of AI technologies. These commitments aim to address the ethical and safety considerations as AI advancements continue to evolve.
The initiative is financially supported by Concerned Innovation Labs, founded by General Catalyst CEO Hemant Taneja. The company’s core principles include internal governance, transparency, risk assessment, auditing, and continuous enhancement to promote responsible AI deployment.
While the industry strives for AI safety, some experts caution that well-intentioned commitments might inadvertently hinder progress in AI safety. IBM has also launched a $500 million venture fund dedicated to AI enterprises, particularly those involved in rapid generative AI technology and corporate research.
The fund aims to facilitate partnerships with IBM, provide expertise in product development and engineering, and devise effective market strategies for startups. Managed by a team of investors and enterprise AI specialists, the fund seeks to drive innovation, establish strategic collaborations, and deliver returns by supporting startups in the enterprise AI sector.
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