Disruptive raises $10B fund to make big bets on at least 10 companies

Disruptive, a Dallas-based investment firm known for backing successful companies like Palantir, Airbnb, and Spotify, has announced plans to raise a $10 billion fund. This fund will be used to invest in late-stage companies, with potential investments ranging up to $1 billion each. The announcement was made on Tuesday and has been reported by the Wall Street Journal as one of the largest fundraises so far this year.

The fund is targeting capital-intensive sectors such as AI and defense. Sources indicate that Disruptive had already secured $7.5 billion in capital commitments by the time the announcement was made. Founded in 2012 by Alex Davis, grandson of billionaire oil magnate Marvin Davis, this is Disruptive's first blind-pool fund, where investors contribute without knowing the specific companies to be backed.

Previously, the firm raised funds through deal-by-deal special purpose vehicles. Disruptive has made waves in recent years by heavily investing in startups like chip startup Groq and AI voice-generation company ElevenLabs. According to Bloomberg, the firm has reportedly returned over $6 billion on the roughly $1.9 billion it has invested in startups. The new $10 billion fund is also noted as the largest venture fund raised in Texas history.