Backers of VC funds are all in on OpenAI and Anthropic
Investors who fund venture firms say nearly everyone is now holding OpenAI and Anthropic, and they are uneasy about how fast VCs are raising new funds.
The facts
- According to TechCrunch, limited partners (the investors behind venture firms) say OpenAI and Anthropic's fast-rising valuations have pulled nearly everyone into the same two companies, often within one firm.
- Beezer Clarkson of LGT Capital Partners says some funds are coming back to raise on one-year pacing. She puts the norm at two to two and a half years.
- Amit Bhatti of TrueBridge calls the faster pace a "yellow light". He says 24 to 36 months used to be normal, and that seed round sizes have gone up almost 2x.
- Both say liquidity is improving. Bhatti points to Cerebras as a big exit this year and a $60 billion M&A deal involving Cursor, plus a growing secondaries market.
Case notes · Danny's take
Why it matters
The usual rule is to spread your bets. Right now the biggest funds are holding the same two names, and the investors behind them are fine with it because the paper gains look huge. That is comfortable while it lasts. If one of those valuations cracks, it will hurt many portfolios at the same time. The faster fund-raising cycle is the other thing to watch. Not the headline returns. The pace.
For builders
Seed rounds are getting bigger and investors are moving faster, so expect VCs to arrive with larger cheques and shorter timelines. Be ready to explain your numbers clearly, because the source says investors are now backing companies that go from zero to $100 million in revenue.
Not financial advice. Do your own investigation.
This story was summarised with AI from TechCrunch's reporting and checked against our editorial policy. Danny's take reflects his views. Disclaimer.
Danny Walter
Founder of Moon Republic, Volt Terminal and Moon Republic Academy. Author of The Market Is a Crime Scene and After the Applause.