At a time when venture capital firms are struggling to raise fresh capital, Battery Ventures has secured $3.25 billion for its latest fund in just 4 months. The vehicle, Battery Ventures XV, is roughly the same size as its 2022 predecessor, signalling stability rather than contraction.
About 80% of the capital came from existing backers, with the remainder from new limited partners. In a market where many investors have grown cautious due to muted IPO activity and fewer exits, that level of repeat support stands out.
Over the past five years alone, the Boston-based firm says it has generated more than $10 billion in returns for its investors, a track record that is likely to have accelerated the fundraise.
Turning AI disruption into opportunity
Recent turbulence in public markets has rattled software stocks. Rapid advances in artificial intelligence, driven by companies like Anthropic, have sparked fears that traditional software businesses could be displaced. Battery’s leadership sees it differently.
Michael Brown, who focuses on application and infrastructure software, describes the recent selloff as an overreaction. While AI may alter how software is sold and delivered, incumbents are already adapting. Business models are being reshaped. Pricing is shifting. Products are being rebuilt with AI at the core.
Rather than retreating, Battery plans to invest across software applications and infrastructure layers, including AI, developer tools, and cybersecurity. The firm is also targeting industrial technology and life sciences, broadening its exposure to sectors where digital transformation is still underway.
At the same time, it is carefully tracking the road maps of foundational AI model builders such as OpenAI and Anthropic to avoid direct competition with them.
Portfolio of investments
Battery’s confidence is rooted in four decades of investing. Founded in 1983, the firm operates from the US, London, and Tel Aviv. It backs early-stage startups, growth companies, and select public equities, a flexible strategy that has helped it navigate multiple market cycles.
Since its inception, Battery has invested in more than 530 companies globally, excluding seed deals. Those investments have resulted in more than 70 public listings and hundreds of acquisitions.
Several portfolio companies illustrate the breadth of its approach:
- Coinbase: A cryptocurrency exchange that helped bring digital assets into mainstream capital markets.
- Affirm: A consumer finance platform redefining instalment payments.
- Databricks: A data and AI platform used by enterprises to manage and analyse vast datasets.
- Shopify: A commerce infrastructure provider powering millions of online merchants.
- Coupa: A cloud-based system for enterprise spend management and procurement.
- Wayfair: An online home goods marketplace that scaled rapidly in public markets.
Standing firm in a cautious market
While parts of the venture industry are pulling back, Battery is leaning in. Its new fund suggests that software, even amid AI-driven disruption, remains central to how businesses operate and scale.
The message is that technology cycles shift, models evolve, but enduring platforms adapt. Investors prepared to back that transition may continue to find opportunity where others see uncertainty.
