The firm's approach is unique in Silicon Valley, with a small, tight-knit partnership of four to six investors who write infrequent checks. This model has proven lucrative, with the firm taking 20% or more of the equity in a startup, alongside a seat on its board of directors. Despite the official fund size being $425 million, the firm's own partners' contributions will effectively give Benchmark more than $500 million to deploy.
Key takeaways:
- Venture capital firm Benchmark is raising $425 million for its eleventh fund, 'Benchmark 1', which is aimed at the new 'technological era' and the artificial intelligence boom.
- The fund will be managed by five equal partners, including Peter Fenton, Eric Vishria, Chetan Puttagunta, Sarah Tavel, and Victor Lazarte, who will share profits and upside evenly, regardless of service time.
- Benchmark plans to make about 30 early-stage investments from the fund, focusing on AI companies within areas such as consumer tech, cloud computing, or crypto.
- With general partner commitments factored in, Benchmark will effectively have more than $500 million to deploy, despite the fund's symbolic $425 million size.