Coatue Management, a hedge fund that heavily invested in tech startups during the pandemic, is planning to raise $1 billion to support AI-focused companies. The funding, which will supplement the firm's flagship fund, will be primarily raised from institutional investors, with high-net-worth individuals with accounts at Raymond James and Associates also having the opportunity to invest. Despite slowing its startup investing pace in recent years, Coatue has backed 29 startups in 2024, with its latest investments including Glean, Scale AI and Skild AI.
Coatue, which manages nearly $50 billion in assets, invested in over 170 VC-backed companies in 2021, but reduced this to 81 companies in 2022 and around 30 in 2023. The firm's founder, Philippe Laffont, has expressed particular interest in humanoid robots with AI-powered brains. Despite the slowdown in startup investments, Coatue continues to invest in private companies.
Key takeaways:
Coatue Management is raising $1 billion to back AI-focused companies, primarily from institutional investors.
The hedge fund has nearly $50 billion in assets under management and has invested in over 170 VC-backed companies in 2021.
Coatue has slowed its startup investing pace, backing only 81 companies in 2022 and about 30 companies in 2023.
So far in 2024, Coatue has backed 29 startups, including AI-focused investments like Glean, Scale AI and Skild AI.
