Anthropic and Menlo Ventures Launch $100 Million AI Startup Fund

Amazon-Backed Anthropic and Menlo Ventures Launch Fund for AI Startups -- Here's Why

The launch follows similar moves by competitors like Microsoft-backed OpenAI, as AI companies invest in startups that could help expand their tech and influence. Amazon-backed (AMZN) Anthropic announced Wednesday that it is partnering with Menlo Ventures to launch the Anthology Fund, a $100 million fund focused on artificial intelligence (AI) that could better Anthropic's position in the AI race by supporting startups that could help advance Anthropic's technology. Anthropic is an AI company and maker of the Claude model, a competitor of Microsoft-backed (MSFT) OpenAI's ChatGPT. While ChatGPT established OpenAI as an early leader of the AI boom, Anthropic claims its latest model offers comparable or better performance than GPT-4o and Alphabet's (GOOGL) Gemini. Anthropic could stand to gain from the fund's rollout as companies supported by the Anthology Fund will have access to Claude and could expand its use. "The Anthology Fund aims to partner with innovative founders to build unique AI-first applications and infrastructure solutions that leverage Anthropic's technology and AI models," Menlo Ventures said in the announcement. The release noted the Anthology Fund is "not just looking for startups," but is "seeking AI pioneers who harness Anthropic's cutting-edge technology to redefine what is possible today through AI," potentially helping advance Claude's capabilities and the AI model's adoption rate, which would benefit Anthropic. The startups that the fund invests in will also receive $25,000 in free credits to harness Anthropics AI models, potentially setting them on the path to becoming paying Anthropic customers. The fund's launch follows similar moves by rivals like OpenAI, which has its own OpenAI Startup Fund, as AI companies invest in startups that could help expand their tech and influence.

Anthropic launches $100 million AI fund with Menlo Ventures, ramping up competition with OpenAI

The artificial intelligence startup and Menlo Ventures are launching a $100 million fund on Wednesday to back early-stage startups, and get them using the AI company's technology. Menlo will put up the cash to invest in the startups, while Anthropic will give founders $25,000 in credits that go toward using its large language models. The launch of the Anthology Fund mirrors a partnership between Apple and venture firm Kleiner Perkins. The joint venture, called the iFund, was introduced in 2008, a year after the iPhone hit the market, to support developers on Apple's mobile platforms. It initially started with $100 million in 2008, and doubled to $200 million two years later. Matt Murphy, a partner at Menlo Ventures and a former partner at Kleiner Perkins, said the iFund was the inspiration for this launch. "That was wildly successful -- it really gave Apple a lens into a whole set of early developers, and what they need to be more attentive to," Murphy told CNBC. "It also gave developers a direct lens into some of the things that Apple was thinking about selling. There's a lot of parallels here." The big difference, Murphy said, is that AI is moving faster than iPhone development. He said this current wave of AI is happening 10 to 100 times quicker than "what was previously the biggest wave of innovation we've seen." Venture capitalists are now looking for ways to sweeten their offers to court AI startups, as investors swarm to the hottest deals. Funding for AI startups more than doubled in the second quarter from the first, topping $24 billion, according to data from Crunchbase. Anthropic is offering coaching, quarterly meetups and other resources, including what amounts to a hotline directly to the company, or what Murphy described as a "bat phone." But Anthropic won't write any equity checks, or get a financial stake in the startups. Daniela Amodei, who co-founded Anthropic with her brother, Dario, after leaving rival OpenAI, said the company wants to establish a feedback loop. The more Anthropic partners with developers, the more it can improve its own products. "In AI, it's very expensive to get started -- it can actually be a deterrent to launching your company," Daniela Amodei told CNBC. "Our goal here is to contribute that component. We're providing credits and also some guidance on how to get started in the ecosystem." Anthropic can also benefit from having the next generation of high-flying AI companies building on its underlying infrastructure. Anthropic directly competes with OpenAI, the creator of ChatGPT. OpenAI has its own venture fund, the OpenAI Startup Fund, which its website says is "investing $175 million to help AI companies have a profound, positive impact on the world." Murphy differentiated the Anthology Fund, and said, "it's hard to provide alignment with another strategic partner." "It's a unique opportunity for Anthropic, for us and a set of entrepreneurs that we're going to be funding over the next couple of years to be part of this, build a great community, learn together, do some of the most disruptive, innovative things and really build something great," Murphy said.

Anthropic partners with Menlo Ventures to create $100M AI startup fund

Anthropic, a rival of Microsoft-backed (NASDAQ:MSFT) OpenAI, has created a $100M initiative with Menlo Ventures to invest in startup artificial intelligence companies, the venture capital firm announced today. Called the Anthology Fund, it plans to partner with "innovative founders to build unique AI-first applications and infrastructure solutions that leverage Anthropic's technology and AI models." "By combining Menlo's company-building experience with Anthropic's cutting-edge AI technology and talent, we are uniquely positioned to identify and partner with the most promising entrepreneurs shaping the future of AI," said Matt Murphy, partner at Menlo Ventures, in a statement. The Anthology Fun will invest in companies from seed to expansion stages. Investments begin at $100,000 as the firm is looking for innovations in AI infrastructure, frontier/novel applications of AI, consumer AI solutions, trust and safety tooling, and AI apps that maximize societal benefits. "We're not just looking for startups; we're seeking pioneers who will harness Anthropic's groundbreaking technology to shatter the limits of what is possible today through AI," said Menlo Ventures partner Tim Tully. Menlo Ventures' portfolio includes more than 80 public companies and has $6.4B under management. Anthropic is known for its signature AI large language model known as Claude.

Anthropic and Menlo Ventures Launch $100 Million AI Startup Fund

"We created this fund to fuel the next generation of AI startups through the powerful combination of Menlo's extensive company-building experience and Anthropic's pioneering AI technology and deep research expertise," Menlo said in a news release Wednesday (July 17). "Through this collaboration, we aim to catalyze innovation and shape the future of artificial intelligence in the startup ecosystem." The companies say "Anthology" is a call-back to "Anthropic" but also represents their shared vision for a "curated collection" of AI innovators working together. "Just as an anthology represents a collection of diverse works of art that form a masterpiece, our fund connects visionary entrepreneurs with Anthropic's groundbreaking technology and Menlo's venture expertise to fuel revolutionary advancements," the announcement said. Menlo, one of Silicon Valley's earliest venture capital groups, is already an investor in Amazon-backed Anthropic, and last year, it said it had raised $1.3 billion in investments in up-and-coming AI firms. The Anthology Fund, the companies will invest in companies from seed to expansion stages, with investments beginning at $100,000 or more. Meanwhile, PYMNTS wrote earlier this month about Anthropic's new funding program for advanced AI evaluations, noting that industry experts say it could accelerate the adoption of AI across a range of commercial sectors. That program aims to help third-party organizations develop new methods for assessing AI capabilities and risks, addressing a crucial gap in the rapidly evolving field. The initiative wants to develop more robust benchmarks for complex AI applications, potentially unlocking billions in commercial value. The lack of comprehensive evaluation tools has hindered widespread adoption as businesses seek to deploy AI solutions. "We're seeking evaluations that help us measure the AI Safety Levels (ASLs) defined in our Responsible Scaling Policy," Anthropic said in its announcement. These levels determine safety and security requirements for models with specific capabilities. The impact of this program is expected to be especially significant for complex AI applications, PYMNTS wrote.

Anthropic is following OpenAI to launch its own $100 million AI startup fund

One of the leading AI startups, Anthropic, is partnering with a venture capital firm, Menlo Ventures, to launch a new fund for AI startups. Menlo Ventures will provide the capital for the $100 million "Anthology Fund," while Anthropic's staffers and AI tech will help identify startups. Funding for early-stage startups through the fund will start at $100,000. The fund will focus on startups building AI safety tools and AI apps with "societal benefits," echoing Anthropic's mission to make AI more responsible. "We're particularly interested in ventures that leverage AI to enhance human capabilities and productivity in fields such as healthcare, legal services, education, energy, infrastructure, and scientific research," said Anthropic president Daniela Amodei. "We look forward to working closely with Menlo and the exceptional founders backed by this Fund to push the boundaries of what's possible with AI." Anthropic co-founders and siblings Daniela and Dario Amodei are ex-OpenAI engineers who left that startup over concerns that it was scaling up its tech too quickly -- and without adequate safeguards. Its startup fund is another example of the company following OpenAI's footsteps while emphasizing its own values. OpenAI launched its own $175 million fund for AI startups in 2021. Anthropic is still worth just a quarter of its rival but recently scored a major investment from Amazon. Venture capital funding for AI has helped prop up private capital markets during a tough macroeconomic environment. Nearly half of all U.S. VC funding so far in 2024 has been for AI startups, according to a recent PitchBook report. In the second quarter, multi-billion dollar funding rounds for AI startups CoreWeave and xAI accounted for more than a quarter of the total value of all deals.

Anthropic teams up with VC firm to offer $100M AI fund

Recipients of six-digit investments aren't required to use Claude Anthropic is setting up a $100 million fund for AI startups with the help of venture capital firm Menlo Ventures. Termed the Anthology Fund, the nine-figure pool of cash will be doled out to "the next generation of AI startups" Menlo Ventures says. Each startup is eligible to receive an investment of at least $100k, with no mention on the maximum investment a company could pocket. Additionally, startups propped up by the fund will get access to Anthropic's AI models, $25k in Anthropic credits, and some amount of credits from Menlo Ventures' firms. There are some other perks of abstract value, including "access to the Anthropic team for expertise, guidance, and dedicated developer relations support," networking with other AI companies, quarterly and biannual meetings with Anthropic and Menlo Ventures, and even "fractional workspace access" to Menlo Ventures' offices. Anthropic doesn't stipulate that recipients must use Claude, its competitor to OpenAI's GPT models. However it does say it assumes startups will want to use Claude, whose latest 3.5 version we looked at last month. In a statement, Daniela Amodei, president of Anthropic, told The Reg: "Through our partnership with Menlo Ventures and the Anthology Fund, we hope to accelerate the development of groundbreaking AI applications that align with our mission. We're particularly interested in ventures that leverage AI to enhance human capabilities and productivity in fields such as healthcare, legal services, education, energy, infrastructure, and scientific research." Amodei added: "We look forward to working closely with Menlo and the exceptional founders backed by this Fund to push the boundaries of what's possible with AI." The application form is pretty standard and asks questions about the company, founders, and the product applicants want to build. There's even an optional question where Anthropic asks how a startup plans to become profitable, something that is significant given the increasing fears that investments into AI will outstrip the tech's profitability. Anthropic's fund mirrors that of OpenAI, whose plainly named OpenAI Startup Fund has $175 million to go around. The overall trajectory of the two companies is remarkably similar, as Anthropic got billions of dollars from Amazon while OpenAI got its big bucks from Microsoft. Anthropic's founders include ex-OpenAI employee Dario Amodei, now its CEO, and Daniela Amodei, now its president, as well as several other researchers, all of whom once worked at OpenAI. ®

Menlo Ventures And Anthropic Open $100M Fund

The new fund will look to back founders building AI-first applications and infrastructure solutions that leverage Anthropic's technology and AI models. Investments will concentrate on -- but won't be limited to -- five areas of AI: infrastructure, frontier/novel application, consumer experiences, trust and safety and solutions that maximize societal benefits. The fund will invest from seed to expansion stages, with investments starting at $100,000. "From our earliest meetings with Anthropic when we first invested in early 2023, we were impressed by their team's caliber and commitment to world-changing, safe AI innovation," wrote Menlo's Matt Murphy and Tim Tully in a blog. "With the Anthology Fund, we've teamed up to further our commitment to the most imaginative AI pioneers," they continued. Menlo took part in Anthropic's Series C in 2023 and earlier this year led a $750 million round in Anthropic. While Anthropic will not take a stake in the companies the fund invests in, an AI or big tech company helping to create an AI-specific fund has become the norm. The OpenAI Startup Fund was launched in 2022, investing $175 million raised from OpenAI partners. OpenAI itself is not an investor.

Menlo Ventures and Anthropic team up on a $100M AI fund | TechCrunch

Silicon Valley VC firm Menlo Ventures, one of the biggest investors in artificial intelligence startup Anthropic, on Wednesday said the two companies are teaming up to set up a $100 million initiative dubbed "the Anthology Fund" to invest in pre-seed and Series A artificial intelligence companies. Menlo recently climbed to the top of Anthropic's list of backers, closing a yet-to-be-announced, over $750 million funding round in the foundation model company, according to a source familiar with the matter. The capital for the Anthology Fund is a carve-out of Menlo's latest $1.35 billion vehicle, which the firm raised last November, Matt Murphy, a partner at Menlo Ventures, told TechCrunch. "We're one of the biggest investors in Anthropic and huge fans of what they're doing," Murphy said. "We thought this was an opportunity for us to do something together, where we can see the ecosystem and find great companies that are building on Anthropic or AI more broadly." The venture firm is essentially leveraging its investment and close relationship with one of the world's most prominent foundational model companies to identify interesting AI-first startups for future investments. The Anthology Fund will write checks starting at $100,000 in startups and provide them with $25,000 worth of credits to use Anthropic's models. The fund is accepting applications from startups through an online form. Menlo will use the firm's proprietary machine learning tool to score and rank applications, Murphy said, adding that the diligence process on these companies is expected to be more "lightweight" than for a typical investment by the firm. Menlo will back any subsequent rounds raised by promising Anthology Fund companies, Murphy said.

Jeff Bezos-Backed Anthropic And Menlo Ventures Team Up To Launch $100M Fund For AI Startups, Increasing Competition With OpenAI - Microsoft (NASDAQ:MSFT)

In a move that mirrors Apple Inc.'s AAPL iFund initiative, Anthropic and Menlo Ventures have launched a $100 million fund to support early-stage AI startups. What Happened: Anthropic, an AI startup backed by Amazon.com Inc.'s founder Jeff Bezos, and Menlo Ventures, a major investor, have initiated the Anthology Fund, CNBC reported on Wednesday. The fund will provide financial backing to early-stage startups and offer them access to Anthropic's AI technology. Menlo Ventures will contribute the capital for the investments, while Anthropic will provide founders with $25,000 in credits for using its large language models. The Anthology Fund's structure is reminiscent of the iFund, a collaboration between Apple and venture firm Kleiner Perkins, which was established in 2008 to support developers on Apple's mobile platforms. Matt Murphy, formerly a partner at Kleiner Perkins and currently a partner at Menlo Ventures, credited the iFund as the inspiration behind this launch. "That was wildly successful -- it really gave Apple a lens into a whole set of early developers, and what they need to be more attentive to," Murphy said. OpenAI operates the OpenAI Startup Fund, dedicating $175 million to support AI companies aiming for significant positive global impact, as stated on its website. This positions Anthropic in direct competition with OpenAI, the developer behind ChatGPT. Anthropic's co-founder, Daniela Amodei, highlighted that the goal is to create a feedback loop to improve their products by partnering with developers. Unlike other funds, Anthropic will not take equity stakes in the startups but will offer coaching and resources. See Also: Meta Removes 'Heightened Penalties' On Donald Trump's Accounts A Day After Ex-President Threatens To Put Mark Zuckerberg In Jail Why It Matters: The launch of the Anthology Fund comes amid increasing scrutiny and competition in the AI industry. Recently, Anthropic, along with Apple, and Nvidia Corp., faced accusations of using YouTube videos to train AI models without creators' consent. Moreover, the AI sector is witnessing fierce competition from Chinese startups. Four Chinese AI companies, including Zhipu AI and Moonshot AI, have achieved unicorn status, with valuations exceeding $1 billion. These firms are rapidly growing and are backed by major investors such as Alibaba Group Holdings, Tencent, and Xiaomi. This surge in competition poses a significant challenge to U.S.-based AI. Additionally, OpenAI recently backed Anysphere in a $400 million funding round. Anysphere, known for its AI code editor Cursor, has seen a significant increase in valuation, reflecting the growing investor interest in AI startups. Meanwhile, Microsoft Corp MSFT is also heavily investing in AI. The tech giant recently funded Touchcast Inc., a startup focused on enhancing AI deployment efficiency. This investment underscores the competitive landscape and the race to advance AI technologies. Read Next: Apple Watch's Redesigned ECG Doesn't Infringe AliveCor Patents, Rules US Customs Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Menlo Ventures and Anthropic Launch $100M Anthology Fund to Accelerate AI Innovation

MENLO PARK, Calif., July 17, 2024 (GLOBE NEWSWIRE) -- Menlo Ventures, a leading venture capital firm, today announced the Anthology Fund, a groundbreaking $100 million initiative created in partnership with Anthropic, the frontier artificial intelligence safety and research company. The Anthology Fund aims to partner with innovative founders to build unique AI-first applications and infrastructure solutions that leverage Anthropic's technology and AI models. "We are thrilled to join forces with Anthropic to launch the Anthology Fund," said Matt Murphy, Partner at Menlo Ventures. "By combining Menlo's company-building experience with Anthropic's cutting-edge AI technology and talent, we are uniquely positioned to identify and partner with the most promising entrepreneurs shaping the future of AI." The Anthology Fund will invest in companies from seed to expansion stages, with investments starting at $100,000. The fund will back selected entrepreneurs innovating broadly with Anthropic technologies, primarily focused on five key areas: AI infrastructure-including DevX tools and middleware-that advances the use of Claude and other LLMs, accelerating their adoption and capabilities.Frontier/Novel applications of AI that will transform bio, healthcare, legal, financial services, supply chains, cloud infrastructure, and cyber security. While we highlight those areas, we are committed to backing exceptional ideas across all sectors.Consumer AI solutions that transform the user experience by seamlessly integrating LLMs as core components driving interactions.Trust and safety tooling (at or above the model layer) that enhances AI safety and offers scalable, profitable solutions for responsible AI deployment.AI apps and tech that maximize societal benefits, such as new forms of education/training, job creation solutions, and tools that expand accessibility. Startups backed by the fund gain access to a suite of resources, including: A strong venture partner: Tap into Menlo's seasoned investors, dedicated services team, and vast network to help build a product into a business primed to hyperscale.Anthropic Advantage: Leverage pioneering AI research, products, and tools.Frontier model access: Harness Anthropic's most advanced AI models with $25,000 in free credits.Collaborative community: Join a vibrant network of like-minded founders, researchers, and business leaders, all driven by the desire to harness AI for positive change.Structured Program: Participate in quarterly deep dives with Menlo Partners and Anthropic's developer relations team, designed to optimize their use of Claude. Showcase progress at bi-annual demo day hosted by the Menlo team and Anthropic leaders like Chief Product Officer Mike Krieger and President Daniela Amodei.Additional Resources: Enjoy credits from Menlo's infrastructure partners and fractional workspace in Menlo's San Francisco and Menlo Park offices. "The Anthology Fund represents more than investing -- we see this as an opportunity to drive AI forward," said Tim Tully, partner at Menlo Ventures. "We're not just looking for startups; we're seeking pioneers who will harness Anthropic's groundbreaking technology to shatter the limits of what is possible today through AI. Our mission is to empower ambitious founders to create solutions that don't just drive value but fundamentally reshape industries and improve lives." "Through our partnership with Menlo Ventures and the Anthology Fund, we hope to accelerate the development of groundbreaking AI applications. We're particularly interested in ventures that leverage AI to enhance human capabilities and productivity in fields such as healthcare, legal services, education, energy, infrastructure, and scientific research," said Daniela Amodei, President of Anthropic. "We look forward to working closely with Menlo and the exceptional founders backed by this Fund to push the boundaries of what's possible with AI." Interested startups can apply for consideration and find more information about the Anthology Fund through the Menlo Ventures website. The investment team, led by Menlo Partners Tim Tully, Matt Murphy, Joff Redfern, Amy Wu, Deedy Das, and Venky Ganesan, will work closely with the Anthropic team to support Anthology startups as they scale. About Menlo Ventures: Menlo Ventures is a venture capital firm that strives to have a positive impact on everything we do. That's why we support businesses, including Abnormal Security, Anthropic, Benchling, Carta, Chime, Harness, Poshmark, Pillpack, Pinecone, Roku, Rover, Uber, and Warby Parker, that are reimagining life and work for the better. Over 47 years, we've grown a portfolio that includes more than 80 public companies, over 165 mergers and acquisitions, and $6.4 billion under management. We invest at every stage and in every sector, with expertise in Consumer, Enterprise, and Healthcare and provide real impact where entrepreneurs need it most. When we're in, we're ALL IN. About Anthropic Anthropic is an AI lab whose research and products put safety at the frontier. As a public benefit corporation, Anthropic is dedicated to ensuring the world safely makes the transition through transformative AI. Their multidisciplinary team creates reliable, interpretable, and steerable AI systems. Anthropic's flagship product is Claude, a large language model that offers the best combination of speed and performance. [email protected] Market News and Data brought to you by Benzinga APIs

Anthropic Launches VC Fund With Its Investor and Will Use Claude to Recommend Deals

"The ultimate decision of which founders and startups we back will be the responsibility of the investment committee," a Menlo Ventures spokesperson told Observer. Anthropic, the A.I. startup behind ChatGPT rival Claude, announced today (July 17) that it's partnering up with one of its investors, Menlo Ventures, to launch a $100 million fund that aims to advance the use of Anthropic's A.I. technology and bring innovative startups to the VC firm. Known as the Anthology Fund, the initiative will see Menlo Ventures funnel investments starting at $100,000 to companies from seed to expansion stages. While Anthropic will not take on equity stakes in startups, it will provide them the use of its most advanced products, offer $25,000 in free credits and allow for startups to showcase progress to Anthropic's president Daniela Amodei and chief product officer Mike Krieger. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters In an unusual move, Anthropic's flagship product, Claude, will also directly participate in the Anthology Fund. The chatbot will help recommend startups for the fund, Menlo Ventures partner Matt Murphy told Bloomberg, a remark that was confirmed by Menlo Ventures. "We are using Claude as part of an automation workflow that we built to manage the influx of applications due to the high amount of inbound that we've already received," a Menlo Ventures spokesperson told Observer in an emailed statement. "But the ultimate decision of which founders and startups we back will be the responsibility of the investment committee." Anthropic did not respond to requests for comment regarding Claude's role in suggesting potential deals. Anthropic was founded in 2020 by siblings Dario and Daniela Amodei, both former OpenAI employees, as a company focused on responsible A.I. Anthropic was earlier this year valued at $15 billion after closing a $750 million round led by Menlo Ventures.The venture capital firm, which will see Menlo Venture partners like Murphy, Tim Tully and Amy Wu lead its Anthology Fund, manages $64 billion in assets and counts more than 80 companies in its portfolio. "Through our partnership with Menlo Ventures and the Anthology Fund, we hope to accelerate the development of groundbreaking A.I. applications," said Daniela Amodei in a statement, adding that the Anthology Fund is "particularly interested in ventures that leverage A.I. to enhance human capabilities and productivity in fields such as healthcare, legal services, education, energy, infrastructure and scientific research." Applications are open online for the fund, which will focus on startups emphasizing areas like A.I. infrastructure advancing the use of Anthropic's Claude and other A.I. models, applications of A.I. across healthcare and cybersecurity, and the enhancement of social benefits and A.I. safety. "Our mission is to empower ambitious founders to create solutions that don't just drive value but fundamentally reshape industries and improve lives," said Tully in a statement. Anthropic isn't the first A.I. company to take advantage of a booming investment environment for the technology. The OpenAI Startup Fund, which is associated with OpenAI but doesn't count the company as an investor, is investing some $175 million into early-stage A.I. startups. The Anthology Fund additionally draws inspiration from the iFund, a 2008 partnership between Apple (AAPL) and venture capital firm Kleiner Perkins that also began with $100 million. While the iFund was "wildly successful" in offering Apple access to developers, A.I. innovation is moving faster than iPhone development ever did, Murphy told CNBC. Global startup funding between April and June of this year more than doubled to $24 billion, according to data from Crunchbase, accounting for more than 30 percent of global startup funding during the quarter.