Bain Capital Ventures has raised $1.6bn for a new fund targeting early-stage companies developing infrastructure, security and other technologies expected to underpin the next phase of artificial intelligence, according to a report by Bloomberg.
The vehicle will also position the wider Bain Capital platform as a source of financing beyond traditional venture capital.
The report cites Bain Capital Ventures partner Slater Stch as saying that new fund, which is around 14% larger than the firm’s previous $1.4bn fund, will invest in 30 to 40 companies over the next two to three years.
The strategy reflects a shift in the capital requirements of AI startups, many of which are becoming increasingly asset-intensive as the cost of computing infrastructure rises. Bain’s new fund will target businesses spanning AI infrastructure, applications in the physical world, cybersecurity and services, including areas such as customer support and IT.
The firm’s existing portfolio includes data-centre developer Crusoe and scientific AI company Periodic Labs, which raised a $300m seed round.
Bain Capital Ventures is also seeking to use the resources of the wider Bain Capital organisation to help portfolio companies access alternative sources of capital as they mature.
Stich said the venture firm’s role increasingly involves helping founders determine how to combine different forms of financing, including capital from Bain Capital’s private equity and credit businesses, rather than relying exclusively on successive equity rounds.
Over the past year, the venture arm has organised so-called “AI treks”, taking private equity executives to San Francisco to meet companies in its portfolio, including coding business Cognition and AI customer-support company Decagon.
The approach reflects the increasingly blurred boundaries between venture capital and other private-market strategies as AI businesses require significantly more capital to fund infrastructure and expansion.
