Disruptive, a Dallas-based investment firm, announced a $10 billion fund to back at least 10 late-stage companies with checks up to $1 billion each. The fund targets AI and defense, sectors that require heavy capital investment.
The Wall Street Journal reported earlier this month that Disruptive had already secured at least $7.5 billion in commitments toward the goal. This marks the firm's first blind-pool fund, where investors commit capital before knowing which companies will receive backing. Disruptive previously raised money through deal-by-deal special purpose vehicles.
Alex Davis, grandson of billionaire oil magnate Marvin Davis, founded Disruptive in 2012. The firm's past investments include Palantir, Airbnb, and Spotify. More recently, it backed chip startup Groq and AI voice-generation startup ElevenLabs.
Bloomberg reported that Disruptive told limited partners it has returned more than $6 billion on roughly $1.9 billion deployed into startups. According to the Dallas Business Journal, the new $10 billion vehicle is the largest venture fund raised in Texas history.