Menlo Ventures announced a $3 billion fund on Tuesday, marking its largest raise in 50 years and underscoring the venture firm's aggressive pivot toward artificial intelligence. The fund's success stems largely from early bets on AI companies, particularly its substantial stake in Anthropic, which sources value at approximately $14 billion. This follows a calculated risk in 2024 when Menlo led Anthropic's Series D round at a $18.4 billion valuation.

In 2024, Menlo executed a $750 million bet-the-firm investment in Anthropic during a challenging venture capital environment. The firm structured roughly $500 million through a special purpose vehicle, pooling capital from multiple sources while contributing $250 million from its own fund and insider contributions. This approach proved prescient as AI SPVs have since proliferated across the market, with Anthropic itself warning about unauthorized secondary market schemes.

Menlo's AI strategy extended beyond direct investments through its Anthology fund, a $100 million partnership with Anthropic that has deployed nearly $250 million across 60-plus startups. The fund has already generated exits including Graphite's acquisition by Cursor and Astrix Security's sale to Cisco, providing early access to emerging AI technologies and talent. Menlo has built a broader reputation in AI investing, backing companies like Open Router, Higgsfield, and Legora.

The record fundraising validates Menlo's contrarian approach during the 2024 VC recovery period, when major firms like SoftBank and Tiger Global remained cautious. By positioning itself early in the Anthropic story before major product launches, Menlo secured returns that now anchor its expanded AI-focused investment strategy.