A successful bet on a hot AI startup has propelled this previously low-profile Dallas firm into the ranks of a select group of mega-fund raisers. Alex Davis, founder and CEO of Disruptive.

Key Takeaways

Venture capital firm Disruptive is raising up to $10 billion for a new fund, joining the elite ranks of investors managing mega-funds.

Disruptive, the venture capital firm that successfully bet on chip startup Groq and open-source AI model maker Reflection AI, is raising a new fund of up to $10 billion, elevating it into the top tier of Silicon Valley investment firms wielding mega-funds.

Details

People familiar with the matter said the firm has already secured $7.5 billion in total commitments and plans to deploy the capital across roughly 10 late-stage companies over the next two years. PitchBook defines funds exceeding $500 million as mega-funds, and the number of venture firms capable of operating mega-funds remains a small minority. So far this year, investment firms including Thrive Capital and Andreessen Horowitz (a16z) have each completed fundraising of more than $10 billion for new funds.

Background

Disruptive was founded in 2012 by Alex Davis, grandson of oil and media tycoon Marvin Davis. Late last year, the firm shot to prominence after NVIDIA (NVDA) struck a major deal with Groq. The firm has also invested in Databricks, defense technology company Shield AI, and voice AI startup ElevenLabs. The Dallas-based firm had previously conducted most of its investments through special purpose vehicles (SPVs), pooling investor capital on a deal-by-deal basis. But that model has fallen out of favor in Silicon Valley; leading startups such as Anthropic, Anduril, and OpenAI have imposed restrictions on some secondary share transfers involving SPVs.