Modular data center startup Rune raised a $40M Series A led by Spark Capital to deploy off-grid compute capacity directly at solar and renewable energy sites (Adele Peters/Fast Company)
A new data center in southwest Texas isn't connected to the grid—but it also didn't require building any new power plants.
Bain Capital Ventures (BCV), the venture arm of private equity giant Bain Capital, has successfully raised an additional $1.6 billion fund, marking a 14% increase from its previous $1.4 billion fund announced three years ago. Like other venture investors, BCV plans to utilize the fresh capital to support startups primarily focused on artificial intelligence (AI).
The firm firmly believes that artificial general intelligence (AGI) – defined as agents capable of performing numerous tasks as efficiently as humans – has already arrived, and the forthcoming wave of startups will not only leverage AGI but also develop the necessary infrastructure to optimize its performance.
BCV anticipates that three key sectors will be crucial in the forthcoming "post-AGI era": infrastructure, healthcare, physical AI, and security. Partner Kevin Zhang highlighted that BCV aims to fund compute infrastructure until the cost of running AI drops to almost negligible levels. Crusoe, a data center developer owned by BCV, is a prime example of this, as it is valued at a staggering $30 billion and is considered a potential candidate for an initial public offering (IPO).
BCV plans to focus on healthcare due to its belief that the sector can undergo significant transformation through AI. Furthermore, security has recently come under national scrutiny following AI agents going rogue during training, presenting a myriad of opportunities for investment. Notable investments made by BCV in these sectors include Loyal, a longevity startup targeting pets, and Dream, an AI-powered national infrastructure defender.
What sets BCV apart from other venture capital firms is its affiliation with Bain Capital, which offers deep expertise and financial products spanning credit, real estate, insurance, and private equity. This unique advantage allows BCV to offer founders more than just equity capital; it also provides access to debt facilities, infrastructure partnerships, and real-economy relationships.
Zhang emphasized that BCV's partners often collaborate in pairs or trios to thoroughly support the teams they work with, enabling them to provide more thoughtful and extensive guidance. The firm's 11th investment fund, its largest to date, will be allocated across 30 to 40 companies primarily at the seed through Series B stages.
Unlike many VC firms where a single partner champion each deal, BCV's approach involves multiple partners to ensure adequate time and resources to thoroughly engage with the investments.
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