Key Takeaways
- • Menlo Ventures raised $3 billion in new capital across two funds in June 2026, marking the largest raise in the firm's 50-year history, with deployment across seed through late-stage AI companies.
- • The dual-fund structure—Menlo Ventures XVII for seed and Series A, and Menlo Inflection IV for Series B and beyond—enables the firm to follow companies from inception through later rounds requiring hundreds of millions in capital.
- • Matt Murphy, a Menlo partner since 2015, leads the firm's AI strategy and has anchored investments in Anthropic (first investment in 2023), plus developer tools, infrastructure, and AI-native software companies including Lovable, Suno, OpenRouter, Modal, and Fireworks AI.
- • Anthropic has become Menlo's most prominent AI portfolio company, with the firm investing in the AI model developer's initial round and adding capital in subsequent financings, validating the partnership model for scaled AI bets.
- • The capital raise reflects a strategic pivot toward larger deal sizes in AI across foundational models, infrastructure, enterprise applications, healthcare, and consumer segments—positioning Menlo to capitalize on what Murphy describes as a "rare land-grab moment" in AI.
Summary
Menlo Ventures announced $3 billion in new capital across two funds in June 2026, representing the largest fundraise in the firm's half-century history and signaling a major institutional commitment to AI-focused investing across all company stages. The capital is structured into two complementary vehicles: Menlo Ventures XVII, targeting seed and Series A stage companies, and Menlo Inflection IV, providing growth capital for Series B and later-stage startups. This bifurcated approach grants the Silicon Valley firm enhanced flexibility to support portfolio companies from their earliest inception through expansion rounds that frequently demand hundreds of millions of dollars.
The deployment strategy targets the full spectrum of AI applications, from foundational models and infrastructure to enterprise, healthcare, and consumer-facing software. Matt Murphy, a partner at Menlo since 2015, has been instrumental in architecting this AI-centric thesis. Murphy leads investment activity across AI infrastructure, developer tools, and AI-native software platforms, establishing himself as the driving force behind Menlo's significant bets in this domain.
Anthropic stands as the centerpiece of Menlo's AI portfolio. The firm made its initial investment in the AI model developer in 2023 and has continued to add capital in subsequent funding rounds, demonstrating commitment to scaling the relationship. Beyond Anthropic, Menlo's AI holdings span diverse subsectors: app-building platform Lovable, music-generation startup Suno, AI model marketplace OpenRouter, voice productivity company Wispr, infrastructure providers Fireworks AI and Modal, robotics startup Skild AI, code security platform Semgrep, legaltech company Legora, and AI research firm Goodfire. Murphy has personally led or anchored Menlo's participation in Anthropic, Lovable, OpenRouter, software delivery platform Harness, Semgrep, and Legora.
The $3 billion raise underscores AI's transformation from a strategic focus area into the firm's primary investment thesis. The enlarged fund sizes enable Menlo to compete for larger allocation opportunities and follow existing portfolio companies through multiple funding rounds without dilution, addressing a historical constraint faced by mid-market venture firms. This capital deployment represents a fundamental recalibration for a firm historically known for backing companies including Uber, Roku, and Siri.
The deployment strategy targets the full spectrum of AI applications, from foundational models and infrastructure to enterprise, healthcare, and consumer-facing software. Matt Murphy, a partner at Menlo since 2015, has been instrumental in architecting this AI-centric thesis. Murphy leads investment activity across AI infrastructure, developer tools, and AI-native software platforms, establishing himself as the driving force behind Menlo's significant bets in this domain.
Anthropic stands as the centerpiece of Menlo's AI portfolio. The firm made its initial investment in the AI model developer in 2023 and has continued to add capital in subsequent funding rounds, demonstrating commitment to scaling the relationship. Beyond Anthropic, Menlo's AI holdings span diverse subsectors: app-building platform Lovable, music-generation startup Suno, AI model marketplace OpenRouter, voice productivity company Wispr, infrastructure providers Fireworks AI and Modal, robotics startup Skild AI, code security platform Semgrep, legaltech company Legora, and AI research firm Goodfire. Murphy has personally led or anchored Menlo's participation in Anthropic, Lovable, OpenRouter, software delivery platform Harness, Semgrep, and Legora.
The $3 billion raise underscores AI's transformation from a strategic focus area into the firm's primary investment thesis. The enlarged fund sizes enable Menlo to compete for larger allocation opportunities and follow existing portfolio companies through multiple funding rounds without dilution, addressing a historical constraint faced by mid-market venture firms. This capital deployment represents a fundamental recalibration for a firm historically known for backing companies including Uber, Roku, and Siri.
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