The OpenAI Startup Fund, an independent venture fund affiliated with OpenAI but operating separately, recently completed a discrete funding round, securing a $15 million tranche. This financing was disclosed in a filing with the U.S. Securities and Exchange Commission, indicating that two undisclosed investors contributed the capital around April 19. The paperwork was officially submitted on April 25, with Ian Hathaway, the sole partner and manager of the OpenAI Startup Fund, mentioned therein.
The funds were directed to a specialized legal entity known as a special purpose vehicle (SPV) associated with the OpenAI Startup Fund, specifically named OpenAI Startup Fund SPV II, L.P. SPVs enable multiple investors to pool resources for investment in a single entity, often utilized in venture capital to target opportunities that might not align with a fund’s core strategy or criteria. Additionally, SPVs can attract a broader range of non-institutional investors.
Which Companies are inside the OpenAi’s Portfolio
This marks the second instance where the OpenAI Startup Fund has raised capital through an SPV, following a similar maneuver in February for a $10 million tranche.
The portfolio of the OpenAI Startup Fund encompasses various companies across diverse sectors such as legal technology, healthcare, and robotics, including notable entities like Harvey, Ambiance Healthcare, and Figure AI.
The OpenAI Startup Fund drew attention last year due to revelations surrounding its control, previously held by OpenAI CEO Sam Altman. Despite marketing itself akin to a traditional corporate venture arm, Altman solicited funding from external limited partners, including Microsoft, a significant investor in OpenAI. Critics voiced concerns over potential conflicts of interest stemming from Altman’s control, although neither OpenAI nor Altman maintained a financial stake in the Startup Fund. OpenAI clarified that Altman’s involvement was intended to be temporary.
In April, formal control of the OpenAI Startup Fund transitioned to Ian Hathaway, who previously served as an investor with the VC firm Haystack and had been instrumental in managing the Startup Fund since 2021.As of the previous year, the OpenAI Startup Fund boasted commitments totaling $175 million and held a gross net asset value of $325 million. Its portfolio includes a range of startups, among them Descript, valued at $553 million in the prior year, as well as language learning app Speak, note-taking app Mem, and IDE platform Anysphere.
