Disruptive Raises $10 Billion Fund for AI and Defense
Disruptive raised a $10 billion fund to invest in late-stage AI, defense, and software startups, shifting from a deal-by-deal investment model.
Disruptive, a venture capital firm based in Dallas, has raised a $10 billion fund dedicated to artificial intelligence, defense, and software startups. The new fund roughly doubles the firm's total managed assets and represents a strategic shift in its operational model. Previously, the firm raised capital on a deal-by-deal basis through special purpose vehicles, but it will now manage a single large pool of capital.
The firm plans to invest approximately $1 billion into each of about 10 late-stage companies. This approach addresses a trend where successful startups remain private longer and require significantly larger funding rounds. Founder Alex Davis noted that the transition to a large fund resolves frustrations among startup founders regarding the opacity of special purpose vehicles.
Disruptive's current portfolio includes companies such as ElevenLabs, Databricks, and Shield AI. The firm previously realized an early return on its investment in Groq following a $20 billion deal involving Nvidia.
