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Disruptive's new $10 billion fund is built for about 10 very big bets

The Dallas firm behind Groq and ElevenLabs says it will back approximately 10 growth and late-stage companies with up to $1 billion each, using money from investors it already knows.

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Why it matters: Up to $1 billion per company could mean more late-stage money for startups that can stay private longer, the trend Disruptive's own founder points to.

For information only, not investment advice. Prices delayed.

Tickers: PLTR, ABNB, SPOT

Dallas-based Disruptive, the firm that has poured money into Groq and ElevenLabs, announced a $10 billion fund on Tuesday. It plans to back approximately 10 growth and late-stage companies with up to $1 billion each, it says.

Per TechCrunch, it's technically the firm's first blind-pool fund, after years of raising money deal by deal through special purpose vehicles. Founder Alex Davis said, per D Magazine: “For the new fund, we didn’t go to new LPs. It was all existing LPs from the last 15 years.”

The pitch leans on the firm's own numbers: Bloomberg reported, according to TechCrunch, that Disruptive told investors it has returned more than $6 billion on roughly $1.9 billion put into startups.

Forbes reports the first deals will include a defense tech startup, a large AI model maker and a neocloud renting out AI chips. “We only invest in six to eight deals a year, which is why I think this whole fund gets deployed in a year and a half or so,” Davis told Forbes. An earlier Wall Street Journal report, as D Magazine relayed it, put the investing window at two years.

TechCrunch, citing the Dallas Business Journal, calls it the largest venture fund raised in Texas history.

The public-market angle: Disruptive's past bets include Palantir ($PLTR), Airbnb ($ABNB) and Spotify ($SPOT). Davis's case, from the release: “The best private technology companies are growing larger, staying private longer and requiring more capital than ever before.”

Sources

  1. Disruptive announces $10 billion flagship fund, Disruptive (via PR Newswire)
  2. Disruptive raises $10B fund to make big bets on at least 10 companies, TechCrunch
  3. Late-stage venture investor Disruptive raises $10 billion fund for just 10 investments, Forbes
  4. Dallas investor Alex Davis on his new $10B fund and the AI arms race, D Magazine (D CEO)
  5. Disruptive $10 billion fund, D Magazine (D CEO)

Tags: venture-capital · funding-round · ai · unicorns