Bessemer Venture Partners raised $5.75B across two funds for AI

Bessemer Raises $5.75 Billion Across Two New Funds

Bessemer Venture Partners announced on Wednesday it raised $5.75 billion across two new funds to accelerate its investments across all parts of the artificial intelligence stack.

The firm allocated $1.75 billion for seed and early-stage investing and earmarked the remaining $4 billion for growth-stage technology companies. Bessemer said the new capital will support its strategy of backing technology companies from inception through later stages of development.

The new financing emphasizes artificial intelligence, various computing infrastructure, key foundation models, modern developer platforms, and the emerging technologies as central to Bessemer's global investment strategy.

Since 2022, Bessemer has backed more than 260 AI-native companies and invested over $3 billion in the rapidly growing technology sector. These investments span various computing infrastructure, key foundation models, developer platforms, enterprise applications, and advanced AI agents across the stack.

Bessemer Partner Byron Deeter said AI-native companies are scaling faster than any category of technology the venture firm has ever backed before in its long history.

Dedicated Growth Platform and Global AI Investment Push

Bessemer is establishing a dedicated growth platform for the first time, reflecting growing capital and value created before public markets. The $4 billion fund will allow the firm to make larger investments in existing portfolio companies and promising new opportunities.

This strategic shift reflects how artificial intelligence allows successful technology startups to quickly develop and scale while many companies increasingly remain private for much longer periods.

Partner Jeremy Levine said AI is creating a generational opportunity, and this capital strengthens Bessemer's ability to make first bets. Levine said the new capital will help the firm make many first bets on global founders shaping the AI age.

Adam Fisher, the partner who established Bessemer's Israel operations, said the firm has rapidly doubled its investment pace in the country over the past two years.

Bessemer has operated in Israel since 2007 and has invested in approximately 80 Israeli technology startups, with more than half at the local early seed stage.

Global Deployment, Israeli Exits, and Rising Competition

Bessemer globally manages approximately $20 billion in assets and has backed more than 450 portfolio companies with over 155 IPOs. The firm intends to deploy the new capital globally, actively pursuing investments across the United States, Europe, India, and Israel.

Bessemer successfully led Upwind's $250 million venture financing in January at a $1.5 billion valuation, and then again in September. In September, Upwind raised another $300 million at a new valuation of approximately $3.8 billion, with Bessemer and TCV leading.

Bessemer's Israeli portfolio includes cybersecurity companies Onyx, Torq, and Neo, as well as AI companies Zyg, Unframe, Wonderful, and Double AI. The firm has recorded 24 exits from Israeli investments since opening its local office, including the IPOs of Wix and Fiverr.

Other major investment firms including Sequoia and Menlo Ventures have also recently raised billions for dedicated growth and expansion vehicles. This increase in dry powder suggests major firms are preparing for a potential strong rise in market activity by mid-2027.