The OpenAI Startup Fund, a venture fund associated with OpenAI, has recently closed a $15 million tranche of funding. The fund focuses on investing in early-stage AI-related companies in fields such as education, law, and the sciences. This latest funding round was contributed by two unnamed investors on or around April 19 and was transferred to a legal entity called OpenAI Startup Fund SPV II, L.P.
Special purpose vehicles (SPVs) like this allow multiple investors to pool their resources and make investments in a single company or fund. In the venture capital sector, SPVs are often used to invest in startups that may not fit a fund’s strategy or terms. They can also attract non-institutional investors.
This is the second time that the OpenAI Startup Fund has raised capital through an SPV. The first time was in February when they secured a $10 million tranche. The fund’s portfolio includes companies like legal tech startup Harvey, Ambiance Healthcare, and humanoid robotics firm Figure AI.
The OpenAI Startup Fund faced criticism last year when it was revealed that OpenAI CEO, Sam Altman, had legal control over the fund. Despite being marketed as a standard corporate venture arm, Altman raised capital from external limited partners and had the final say in investment decisions. While neither OpenAI nor Altman had a financial interest in the fund, critics argued that Altman’s ownership created a conflict of interest. OpenAI claimed that this structure was only temporary.
In April, Altman transferred control of the OpenAI Startup Fund to Ian Hathaway, who had been involved in managing the fund since 2021. Hathaway, previously an investor with VC firm Haystack, now serves as the fund’s manager and sole partner.
As of last year, the OpenAI Startup Fund had commitments of $175 million and held $325 million in gross net asset value. The fund has backed over a dozen startups, including Descript, a multimedia editing platform valued at $553 million, language learning app Speak, AI-powered note-taking app Mem, and IDE platform Anysphere.
While OpenAI has not yet responded to requests for comment, it is worth noting that the fund’s recent transition of control to Hathaway may address some of the previous concerns raised about conflicts of interest. Nonetheless, as the fund continues to invest in early-stage AI startups, it will be interesting to see how it evolves and contributes to the growth of the AI industry.