Key Takeaways
- • Air Street Capital closed Fund III at $232 million in commitments, nearly doubling its second fund ($121 million in 2022) and representing ninefold growth from its first fund, establishing the firm as Europe's largest solo GP venture capital firm.
- • Fund III is backed by Tier 1 US institutional capital including university endowments, foundations, hospitals, and institutional investment management platforms, signaling strong institutional confidence in AI-focused venture strategies.
- • Investment strategy targets AI-first companies across Europe and North America, with capacity for growth-stage bets up to $25 million in category-leading AI companies, reflecting a dual focus on early-stage and scaled opportunities.
- • Morgan Lewis legal team (partner Rob Mailer, associates Eliska Macnerova and Chris Lloyd, and partner Jason Traue) advised on fund formation, with co-counsel from Ogier and Highvern on structural elements.
Summary
Morgan Lewis has advised Air Street Capital, a venture capital firm specializing exclusively in AI-first technologies, on the formation of its third venture capital fund. The fund closed on March 24, 2026, with over $232 million in total commitments, marking significant sequential growth for the London-based firm.
The $232 million Fund III represents a material expansion of Air Street Capital's capital base. The fund is nearly double the size of Fund II, which closed at $121 million in 2022, and nine times larger than the firm's inaugural fund in 2019. This growth trajectory has positioned Air Street Capital as the largest solo general partner venture capital firm operating in Europe, according to the announcement.
The fund's institutional backing reflects strong confidence in AI-focused venture investing. Limited partners include Tier 1 US university endowments, foundations, hospitals, and institutional investment management platforms—a capital base typical of established, institutionally-focused venture firms. Fund III will deploy capital across both geographies, targeting AI-first companies in Europe and North America, while maintaining flexibility for select growth-stage investments of up to $25 million into category-leading AI companies with proven market traction.
The Morgan Lewis legal team supporting the fund formation included partner Rob Mailer and partner Jason Traue, alongside associates Eliska Macnerova and Chris Lloyd. The engagement reflects the complexity of structuring multi-jurisdictional venture funds with significant institutional limited partner bases, with additional advisory support provided by Ogier and Highvern on complementary aspects of the fund's formation.
The $232 million Fund III represents a material expansion of Air Street Capital's capital base. The fund is nearly double the size of Fund II, which closed at $121 million in 2022, and nine times larger than the firm's inaugural fund in 2019. This growth trajectory has positioned Air Street Capital as the largest solo general partner venture capital firm operating in Europe, according to the announcement.
The fund's institutional backing reflects strong confidence in AI-focused venture investing. Limited partners include Tier 1 US university endowments, foundations, hospitals, and institutional investment management platforms—a capital base typical of established, institutionally-focused venture firms. Fund III will deploy capital across both geographies, targeting AI-first companies in Europe and North America, while maintaining flexibility for select growth-stage investments of up to $25 million into category-leading AI companies with proven market traction.
The Morgan Lewis legal team supporting the fund formation included partner Rob Mailer and partner Jason Traue, alongside associates Eliska Macnerova and Chris Lloyd. The engagement reflects the complexity of structuring multi-jurisdictional venture funds with significant institutional limited partner bases, with additional advisory support provided by Ogier and Highvern on complementary aspects of the fund's formation.
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