- OpenAI Startup Fund, now helmed by Ian Hathaway, has secured an extra $5 million in funding.
- Funds were raised through a special purpose vehicle, OpenAI Startup Fund SPV III, L.P.
- This marks the third round of SPV funding for the initiative.
- Previous rounds raised $15 million and $10 million respectively.
- Last year, the fund had commitments totaling $175 million and a gross net asset value of $325 million.
- The fund operates as a corporate venture capital unit, attracting external limited partners such as Microsoft.
- It has invested in at least 16 startups, including Harvey, Ambiance Healthcare, and Figure AI, but also faced setbacks like the closure of Ghost Autonomy.
Main AI News:
The OpenAI Startup Fund, a venture capital enterprise specializing in early-stage AI ventures and now led by Ian Hathaway, has successfully secured an additional $5 million in funding, as disclosed in a recent filing with the U.S. Securities and Exchange Commission.
This recent injection of capital was obtained from two investors who allocated the funds into a special purpose vehicle known as OpenAI Startup Fund SPV III, L.P., an entity affiliated with the overarching fund.
Notably, this marks the third occasion where the OpenAI Startup Fund has established an SPV. Last month, the fund concluded its second SPV round with a total of $15 million, as reported by TechCrunch. Preceding this, the fund initiated its first SPV round in February, raising $10 million.
Documents filed with the SEC indicate that the fund boasted $175 million in commitments last year, with a gross net asset value of $325 million earlier this year, underscoring its substantial growth trajectory.
While functioning as a corporate venture capital entity, the OpenAI Startup Fund actively seeks external limited partners for capital infusion, with notable involvement from Microsoft, a key partner and investor in OpenAI.
According to data from PitchBook, the Startup Fund has extended support to a diverse portfolio of at least 16 startups, including prominent names like Harvey, Ambiance Healthcare, and humanoid robotics firm Figure AI. However, it’s worth noting that the fund also encountered setbacks, such as its investment in Ghost Autonomy, an autonomous driving company that ceased operations last month.
Conclusion:
The OpenAI Startup Fund’s successful acquisition of an additional $5 million underscores its continued growth and ability to attract investors. With significant commitments and a diverse portfolio of supported startups, the fund’s expansion signals continued interest and investment in AI ventures. However, the closure of Ghost Autonomy highlights the risks inherent in such investments, emphasizing the importance of strategic decision-making and due diligence in the evolving AI market landscape.
