Accel Raises $3.5 Billion for Early-Stage AI and Deep Tech

Global venture capital firm Accel has raised $3.5 billion across four new funds to target early-stage artificial intelligence and deep tech sectors. The capital is distributed among a $1.35 billion global expansion fund for larger early-stage rounds, $800 million for US investments, $800 million for Europe and Israel, and $550 million for India.

The India-focused vehicle marks the ninth fund for the region and brings the firm's total capital raised for India to $1.2 billion over the last 18 months. While the $550 million fund is smaller than its predecessor, Accel partners stated the amount is sufficient to meet demand. The firm is prioritizing AI-first companies building vertical applications and infrastructure, as well as consumer internet, fintech, and advanced manufacturing.

Accel intends to leverage India's IPO market to scale startups into billion-dollar businesses, noting that AI now enables Indian founders to build for global markets from inception. This fundraising follows a separate $5 billion raise for later-stage investments. Amidst these expansions, the firm confirmed that partner Daniel Levine will maintain his partner status and board seats but will no longer make new investments for the firm in current or future funds.