Menlo Ventures disclosed the SPV, Menlo Inflection AI Partners, in a regulatory filing, stating it planned to raise $500 million for the round, with the remaining $250 million coming from Menlo's own funds and contributions from insiders. Amazon and Google had previously committed to investing billions into Anthropic. Amazon's investment included a $1.25 billion convertible note that converts in this round, and an agreement to invest up to $2.75 billion in a second note. Google's investment included a $500 million tranche that converts into the Menlo-led round, with two additional tranches of $750 million to be invested at later time intervals.
Key takeaways:
- Artificial intelligence startup Anthropic is raising $750 million in new funding, quadrupling its valuation to $18.4 billion. The round is led by Menlo Ventures using a special purpose vehicle (SPV), a tactic becoming increasingly popular to secure a leading position in investment rounds.
- Menlo Ventures' aggressive move surprised some investors, but it allowed the firm to invest more than it typically could in a single company. The SPV also allows Menlo to secure financial upside through fees and carried interest.
- Anthropic's new funding round also formalizes terms for investments promised by Amazon and Google. Amazon has committed to an investment of up to $4 billion, while Google has committed to another $2 billion, following a previous investment in Anthropic's $450 million funding round in May 2023.
- Anthropic is currently looking to increase its headcount by about 20%, with nearly 60 open roles available on its website. The company's sales projections have increased rapidly in recent months, but much of that revenue remains unrealized.