Index Ventures Cashes in on Wiz, Promptly Reinvests in More Things That May or May Not Work
Index Ventures raises $2B across three funds, fresh off a $32B Wiz exit, and decides to double down on AI and other things that might make them more money.
Index Ventures, the 30-year-old venture capital firm that clearly believes in the 'spend money to make money' philosophy, has announced it has raised a fresh $2 billion in capital across three funds. Because why stop when you're on a roll?
The breakdown: $400 million for a new seed-focused fund, $900 million for its venture fund, and a $700 million top-up to a $1.5 billion growth fund from 2024, bringing the firm's total available capital to a cool $3.5 billion. This comes two years after Index raised $2.3 billion across two funds, including $800 million for a predecessor venture fund. Apparently, they're not afraid of commitment.
While other VCs have been ballooning their fund sizes like they're competing in a hot air balloon race, Index has kept things relatively modest. And it's paid off. Earlier this year, Index portfolio company Wiz completed its $32 billion sale to Alphabet. Index first invested in Wiz at the seed stage and became its largest outside shareholder with a 12% stake, a position likely worth $3.8 billion, according to Reuters. Not too shabby for a seed bet. They were also an early investor in Figma, which went public last year, so they clearly have a nose for these things.
Now, Index is betting big on AI, with investments in robotics company Physical Intelligence, inference platform Fireworks AI, and Anthropic, the AI model maker that raised capital at a $183 billion valuation last September. So, if you're keeping score at home, Index is essentially buying up all the smartest robots and chatbots it can find. We can only hope they're investing in some witty writers too, though we're not holding our breath.
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