Felicis has closed $900 million for its Fund X to capitalize on AI, the firm said Thursday.
While some VC firms have scaled back their new fund targets in light of the market challenges, Felicis’ latest vehicle is its largest to date. It’s also a sign that some early-stage firms are accumulating more capital to compete with the larger multi-stage firms of the venture world.
More than 70% of Felicis’ active portfolio companies are AI native— a capital-intensive investing space that shows little sign of abating.
The firm sees AI as the make-or-break investing category of the next decade. “We believe dozens of $100B+ AI companies will emerge this decade (not merely $1 billion or $10 billion),” it said in a press release.
With AI startup revenues picking up steam, VCs are getting ever more eager to get a slice of the action. But how sustainable that revenue growth will be remains an open question.
Felicis’ latest fund is among the largest venture funds raised so far this year, according to PitchBook data. The firm said that in addition to its AI focus, it will also invest in cybersecurity, broad infrastructure, defense, energy, health and biotech.
Learn about our editorial standards.
