May 21, 2024

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OpenAI startup fund quietly raises $15 million

2 min read

OpenAI Startup FundOpenAI, a associated – however technically separate – enterprise fund that invests in early-stage, AI-related corporations sometimes in schooling, legislation and science, has quietly closed a $15 million tranche.

in line with a filed Along with the US Securities and Exchange Commission, two unnamed traders contributed $15 million in new money on or round April 19. The paperwork was submitted on April 25, and mentions Ian Hathaway, supervisor and sole associate of the OpenAI startup fund.

The capital was transferred to a authorized entity referred to as a particular objective automobile, or SPV, which is linked to the OpenAI Startup Fund: OpenAI Startup Fund SPV II, LP.

SPVs permit a number of traders to pool their sources and put money into a single firm or fund. In the VC sector, they’re generally used to put money into startups that don’t match right into a fund’s technique or that fall exterior the fund’s phrases. SPVs may also be marketed to a variety of non-institutional traders.

This is the second time OpenAI Startup Fund has raised capital by way of an SPV – the primary being Creature for a $10 million tranche in February.

OpenAI Startup Fund, whose portfolio corporations embrace authorized tech startups harvey, Ambience Healthcare and humanoid robotics corporations Figure A.I., got here underneath scrutiny final yr when it was revealed that OpenAI CEO Sam Altman had lengthy managed the fund legally. Marketed like a regular company enterprise arm, Altman raised capital for the OpenAI Startup Fund from exterior restricted companions, together with Microsoft (an in depth OpenAI associate and investor), and performed the ultimate position within the fund’s investments.

Neither OpenAI nor Altman had – or have – any monetary curiosity within the OpenAI Startup Fund. But critics nonetheless argued that Altman’s possession amounted to a battle of curiosity; OpenAI claimed that the final associate construction was meant to be “temporary”.

In April, Altman transferred formal management OpenAI Startup Fund’s Hathway, beforehand an investor in VC agency Haystack, has performed a key position in managing the startup fund since 2021.

Like final yr, the OpenAI Startup Fund – whose ventures additionally embrace an incubator program concentrate – Had $175 million in commitments and $325 million in gross web asset worth, It’s backed by greater than a dozen startups, together with Descript, a collaborative multimedia modifying platform that was valued at $553 million final yr; language studying app Speak, AI-powered be aware taking app Mam, and IDE platform wherever,

OpenAI had not responded to TechCrunch’s request for remark by publishing time. We will replace this submit if we get any response.

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