The OpenAI Startup Fund, which is linked to but operates separately from OpenAI, focuses on early-stage investments in sectors such as education, law, and science. This fund recently accomplished a significant financial milestone by securing a $15 million tranche.
Documentation filed with the U.S. Securities and Exchange Commission reveals that on or around April 19, two anonymous investors contributed to this fresh infusion of capital. Filing occurred on April 25, disclosing Ian Hathaway as the fund’s manager and sole partner.
This additional funding is channeled into a special purpose vehicle (SPV) known as OpenAI Startup Fund SPV II, L.P. SPVs serve as a means for investors to consolidate their investments and direct them towards a single entity or fund. They are particularly useful in venture capital when dealing with investments that stray from the fund’s primary focus or exceed the terms of the fund. Additionally, SPVs open the possibility for a broader spectrum of non-institutional investors to participate.
The recent transaction marks the second instance of the OpenAI Startup Fund raising money through an SPV, following a $10 million tranche raised in February.
Notable within the OpenAI Startup Fund’s investment portfolio are companies like Harvey, a legal tech enterprise, Ambiance Healthcare, and Figure AI, a humanoid robotics company. The fund came under scrutiny last year due to the revelation that OpenAI CEO Sam Altman had substantial control over it. While functioning similarly to a typical corporate venture arm, Altman had been responsible for securing investments from external limited partners, including Microsoft, and held decisive power over the fund’s investment choices.
Despite this influence, neither OpenAI nor Altman has a financial stake in the OpenAI Startup Fund. Critics have debated the potential conflict of interest due to Altman’s control, but OpenAI has positioned the general partner structure as a temporary measure.
In a notable shift of leadership dynamics, April saw Altman hand over formal control of the Startup Fund to Hathaway, a seasoned investor with VC firm Haystack and a pivotal figure in the fund’s management since 2021.
As of the previous year, the OpenAI Startup Fund boasted $175 million in commitments and a gross net asset value of $325 million. The fund has supported a range of startups, including Descript, a multimedia editing platform; Speak, a language learning app; Mem, an AI-driven note-taking application; and Anysphere, an IDE platform.
At the time of reporting, OpenAI had not provided comments on the recent funding round.
