Betaworks, the top venture studio in New York City according to our research, has closed its third fund. Their $66 million fund allows them to invest in the most promising early-stage artificial intelligence (AI) startups. This bold move deepens Betaworks’ commitment to AI. In fact, the company has been betting heavily on this sector since as far back as 2016. The firm’s fourth and largest fund to date is looking to double down on agents, native AI interfaces and application-layer AI technologies.
Founded in 2008 by entrepreneur and investor John Borthwick, Betaworks has grown into one of the most influential and interesting companies in New York City’s tech ecosystem. In 2016, the firm released their investment program, Betaworks Camps. Since then, it has continued to fund impressive companies like Huggingface and Granola. The popularity of these projects brings to life what makes Betaworks so special in its capacity to find and create successful, innovative startups.
Betaworks boasts a hat trick of successful raising fortunes. In 2016, it was able to raise $48 million for its debut fund, and $46 million more for its sophomore fund in 2020. The firm’s earliest predecessors as limited partners have come back to participate in Fund III. This speaks volumes about their confidence in Betaworks’ investment strategy and track record. The firm has made just ~37 deals to date, including investments in notable platforms like Tumblr and Kickstarter.
Jordan Crook, partner at Betaworks and former TechCrunch writer, summed up the difficult realities of the fundraising journey. He stated, “The fundraising environment in venture was challenging in 2024, and we weren’t exempt, given that we were upsizing our fund.” Even with these headwinds in place, Crook doubled down on the firm’s dedication to their three main investment ideas.
“Around these themes, we will continue to do straight seed investing and the Betaworks Camps,” – Jordan Crook
The new fund will allow Betaworks to expand its portfolio while continuing to support emerging technologies in the AI landscape. This emphasis on early-stage investments makes Betaworks an influential player behind the next waves of AI innovation.