TLDR:
- Benchmark is raising a new $425 million fund for the AI startup era.
- The firm’s partners plan to make about 30 early-stage investments and focus on delivering high levels of service to founders and limited partners.
Venture capital firm Benchmark is raising $425 million for ‘Benchmark 1,’ its eleventh fund, for a new ‘technological era.’ The partners, Peter Fenton, Eric Vishria, Sarah Tavel, Chetan Puttagunta, and Victor Lazarte, will all serve as equal partners in the fund, sharing profits evenly. The fund aims to make 30 early-stage investments and maintain a disciplined approach. Benchmark has a history of successful investments in companies like Uber and Twitter by focusing on a small team of experienced investors. The firm has already made several AI investments and plans to continue investing in AI companies within their usual focus areas. The model has proven lucrative for the firm, with early stakes turning into substantial returns at IPOs.
Benchmark’s unique approach to investing has led to success in the past, with a focus on a small, experienced team of partners who write infrequent, but large checks. The firm’s partners have a reputation for taking significant equity in companies they invest in, leading to substantial returns when those companies go public. The firm’s methods have kept it top of mind in Silicon Valley, despite competition from larger, multi-billion dollar funds.
