Dallas-based investment firm Disruptive announced on Tuesday that it has closed a $10 billion fund aimed at late-stage companies in artificial intelligence and defense, according to TechCrunch. The firm plans to back at least 10 businesses through the vehicle, writing individual checks of as much as $1 billion.
It ranks among the largest fundraises of the year so far, and it is the biggest venture fund ever assembled in Texas, the Dallas Business Journal reported.
Why it matters
The size of the raise signals where large pools of private capital are heading: toward companies whose work is expensive to build and slow to scale, particularly in AI infrastructure and defense technology. A single fund capable of writing $1 billion checks gives Disruptive the ability to take meaningful positions in mature companies rather than spreading smaller bets across early-stage startups.
The fund is also a milestone for the firm itself. Until now, Disruptive raised money deal by deal through special purpose vehicles, structures in which investors commit to a specific company in advance. This is the firm's first blind-pool fund, meaning backers put in money without knowing in advance which companies will receive it.
From deal-by-deal to a single pool
The Wall Street Journal first reported earlier this month that the firm was raising the fund, and at that point it had already gathered at least $7.5 billion in commitments. Bloomberg reported that Disruptive told its investors it has returned more than $6 billion on roughly $1.9 billion placed into startups.
The new vehicle's focus on AI and defense places it alongside a broader wave of capital moving into those sectors. Defense technology in particular has drawn increased investor attention, and AI companies continue to absorb large sums as they build out computing capacity and hire research talent.
What to watch
With the fund closed, attention turns to which companies Disruptive selects and how quickly it deploys the capital. The firm has said it intends to make at least 10 investments, and the first names to emerge from the new pool will show how it balances AI and defense bets at the late stage.
