(Bloomberg) -Lightspeed Venture Partners Investment Team is a quiet day before last year’s Christmas, when most venture capitalists retreat in Aspen or Jackson Hall, and some bids of Openai rivals. I was considering it.
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According to those who are familiar with this issue, venture capital companies have approached an artificially leading investment of billions of dollars. The contract quickly became shape. With a $ 60 billion evaluation, the 2 billion dollar fund raising was tripled that the startup was worth one year ago. By early January, transactions were virtually conducted.
Lightspeed, which is in charge of $ 25 billion management, is a rare member of VC companies that can enjoy Tech’s hottest, most expensive companies. In addition to humanity, LightSpeed ​​has recently participated in a large -scale funding round of the artificial intelligence company Databrics Inc.
AI Megadeals is a standard for top tier VC diet despite risks.
“It’s a high stake spoker,” said AI Investor Sierra Ventures Managing Partner Tim Glelli.
In the past three months, XAI, Openai, and humanity have raised more than $ 20 billion to support large computing costs. These transactions collectively referred to three companies to over $ 250 billion. According to PitchBook Data, US AI startups have raised a record of $ 97 billion in 2024.
Investors said that for venture capitalists, especially those who missed the opportunity to support the top AI companies at low prices, the pressure matched the major players before they were too late. Lightspeed and the representatives of mankind have refused to comment on this story.
“It indicates that you are participating in the game,” said Peter Verner, co -chairman of the Coolley Venture Capital Practitis Group. “What you don’t want to be the venture fund that is trying to participate in the mix.
VC shift
LightSpeed ​​was established more than 20 years ago at the heel of dot com bust by Barry Eggers, Christopher Schaepe, Peter Nieh, Ravi Mhatre, which led human negotiations. The best -known investment in consumer technology, fintech, and enterprise software is well -known, betting on companies such as Snap Inc., Affirm Holdings, and Rubrik Inc. early. As part of the most famous Tier One VC player. Insidered by aggressive AI betting, if these transactions succeed, you will be able to enhance that position forever.
Like many of the VC industry, LightSpeed ​​has attracted attention to AI startups and supports major players in early -stage companies, such as SUNO Inc. and video startup pika. In December, he said that he had separated from two major consumer investors and adjusted his consumer investment strategy in accordance with the age of AI.
In total, LightSpeed ​​has already invested $ 2.2 billion in AI trading. This is a figure that does not include the latest human investment, according to other people who are familiar with this problem. Immediately, there is an additional firepower to throw it to a hungry company. Those who are familiar with this issue are approaching the end of funding, which is expected to bring $ 7 billion. LightSpeed ​​spokesman has refused to comment on funding. Previous information has been reported on funding initiatives.
The company’s human investment is one of the most ambitious things so far. And the value of $ 60 billion may look high as you look away, but LightSpeed ​​partners hope that the transactions look like a bargain.
“I feel that the evaluation is expensive because there are many activities and many transactions in the aggregation,” said Guru Chahal, a LightSpeed ​​partner at Fortune Brainstorm Tech Conference last year. “Looking back, all rounds seemed very expensive at that time, and when I looked back, it was incredibly cheap.”
Big AI transactions continue to be the source of discussions in Silicon Valley. We believe that the biggest company is the most transformed, but some venture capitalists have gained returns needed for high -tech investors to participate in a huge financing round. I claim that I can’t. These investors are targeting smaller AI apps and services, not giants like human or Openai, and are engaged in the development of expensive building blocks in the industry.
AI MegaDeals’s recent rising storms also talk about more wider changes in VC. This is a deviation from a traditional strategy of early investment in which companies gain a greater interest in a lower evaluation. At present, VC companies pay large insurance premiums, and a small number of AI companies are ultimately worth more than $ 1 trillion.
Weber states that the increase in VC funds requires companies to write a bigger check. The company said, “I’m not always trying to find a home run, but I’m trying to double the money,” rather than aiming for a large number of investments.
“There are so many companies before the iconic generational IPOs today,” said AJAY VASHEE, an IVP general partner. “If your mission is to invest at that stage, you have to find an opportunity to work on your capital.”
Unstable start
Competition to find these opportunities is full of risks, such as the uncertainty of regulatory authorities, intense competition, and soaring infrastructure costs for major AI developers.
Investors will be exposed if the bubble bursts, fearing that the AI ​​betting is lacking. Already, this sector has seen a billions of dollars stumbling.
For example, LightSpeed ​​jointly shows famous investment in stable AI, a stable spread developer of image generators, which was evaluated as $ 1 billion in 2022. Later, several major developers resigned during the growing tension with mercury’s highest executive officers. Emado Moste mushrooms, litigation, financial difficulties. According to Bloomberg, Mostaque resigned in early 2024. Later, the company appointed a new CEO and raised additional capital.
Lightspeed is a major investor in Mistral, an open source company -based open source company, and is currently competing with many language models that provide funds.
Of course, LightSpeed ​​and other top VC companies hope that by betting some competitors, at least one major AI winner will be obtained. Otherwise, radioactive drops can be important.
“I can’t lose much of this high stake spoker game,” said Sierra Ventures Gururi. “That is the risk of strategy.”
