Dallas-based venture capital firm Disruptive is raising up to US$10 billion, equivalent to A$14.4 billion, for a new late-stage investment vehicle. People familiar with the matter told The Wall Street Journal that the firm has already secured US$7.5 billion in commitments toward the fund. The capital is expected to be deployed across roughly 10 mature technology companies over the next two years.
A Late-Stage Megafund
Should Disruptive complete the raise at its upper target, the vehicle would rank among the largest venture capital funds ever assembled. PitchBook defines a megafund as any fund exceeding US$500 million, and Disruptive's plan would be materially larger than that benchmark. The additional scale is intended to give the Dallas-based firm enough capital to lead large late-stage rounds in competitive technology sectors.
Artificial Intelligence Investment Record
Disruptive is best known for its backing of chip startup Groq, which has become one of the most closely watched companies in artificial intelligence infrastructure. Late last year, Nvidia reached a US$20 billion licensing agreement with Groq, bringing new attention to Disruptive's portfolio. The firm has also invested in open-source AI model maker Reflection AI, data analytics company Databricks, defense technology company Shield AI, and voice AI startup ElevenLabs.
What the Fund Will Target
The fund is expected to invest in about 10 late-stage companies over a two-year period. These companies are likely to operate in artificial intelligence, defense technology, data analytics, and other high-growth sectors where Disruptive has existing expertise. The concentrated portfolio approach suggests the firm will prioritize large ownership positions and closer engagement with a smaller group of companies.
Founder and Strategic Shift
Alex Davis, the grandson of oil and media billionaire Marvin Davis, founded Disruptive in 2012. Until recently, the firm primarily used special purpose vehicles to raise capital for individual deals, an approach that has fallen out of favor across the venture industry. The new standing fund marks a shift toward a more conventional model at a time when several high-profile startups have restricted secondary transactions of the kind special purpose vehicles often facilitate.
Competitive Fundraising Landscape
The new fund would place Disruptive alongside a group of venture capital firms that have built very large investment vehicles to pursue late-stage technology opportunities. Thrive Capital and Andreessen Horowitz, for example, have each raised more than US$10 billion for new funds this year, according to The Wall Street Journal. This concentration of capital reflects the intense competition for stakes in artificial intelligence companies and other capital-intensive technology businesses.
Industry Comparisons
Disruptive's target is substantially larger than several other recent megafund announcements across the venture capital industry. In May, Haun Ventures, a crypto-focused firm, announced US$1 billion in new funds, split between early- and later-stage vehicles. Haun Ventures also plans to expand into AI agents while maintaining its core focus on crypto and financial services.
Why Scale Matters in Late-Stage AI
Demand for late-stage artificial intelligence investment has pushed many venture firms to raise larger funds than they would have considered in previous cycles. High-profile startups in the sector require substantial capital to support product development, compute infrastructure, and global expansion. A vehicle of this size would allow Disruptive to lead financing rounds and maintain meaningful ownership positions in companies that are already well capitalized.
Disruptive's planned fund underscores the growing scale of late-stage technology investing. The shift from deal-by-deal special purpose vehicles to a standing megafund reflects both the firm's maturing strategy and the capital demands of modern artificial intelligence companies. With US$7.5 billion already committed toward a US$10 billion target, Disruptive is positioned to become a more prominent force in venture capital over the next two years.
Source: The Wall Street Journal