Index Ventures doubles down on AI with fresh $2bn fundraise

Index Ventures has increased its capital commitment in artificial intelligence by raising an additional $2 billion in fresh funding, bringing the European venture capital firm's total assets under management to $3.5 billion. The new $400 million seed fund, $900 million venture fund, and $700 million injection to an existing growth vehicle have expanded Index's growth fund from $1.5 billion to $2.2 billion.

This investment surge aims to capitalize on AI's potential to create the next generation of global technology companies, a sector where Index has shown a growing confidence. Founded in 1996, Index has previously supported notable companies like Revolut, Adyen, Figma, Roblox, Datadog, and cybersecurity firm Wiz. Recent successes, such as Google's acquisition of Wiz for $32 billion and Figma's IPO, have further bolstered the firm's performance.

The new capital will enable Index to continue supporting founders from the initial funding round through to public markets and beyond, across its core regions of Europe, Israel, and the United States. Despite a slowdown in VC with challenging exit activity, the AI sector remains a shining success for many firms. Index Ventures' increased exposure to AI is evident in their recent investments in Mistral, Cohere, and David Silver's startup Ineffable Intelligence.

The firm's CEO, Martin Coulter, highlighted the technology's ability to empower more individuals to build products, accelerating the transition from concept to product and creating opportunities across various sectors including cybersecurity, fintech, healthcare, and consumer software.