OpenAI Startup Fund, a separate entity from OpenAI but is otherwise affiliated with it, raises $15 million in funding confirmed by a recent SEC filing.
A funding round has awarded $15 million to the OpenAI Startup Fund. This organization is operationally separate from the well-known Artificial Intelligence (AI) firm OpenAI but is otherwise affiliated with it.
The confirmation was provided in the filing with the United States Securities and Exchange Commission (SEC) that the funds were procured with fresh cash on or approximately April 19th. In contrast, the documentation was formally submitted on April 25th.
Two unidentified investors significantly contributed to the $15 million tranche. Although Ian Hathaway, manager and sole partner of the OpenAI Startup Fund, was only mentioned in passing in the filing.
All capital was transferred to OpenAI Startup Fund SPV II, L.P., a particular purpose vehicle (SPV), to facilitate fund aggregation. This signifies the OpenAI Startup Fund’s second instance of capital-raising through an SVP. An initial investment of $10 million was made. Typically, by utilizing such SVPs, investors can aggregate their resources before physically investing in a single company or fund.
Senior venture partners (SVPs) in the venture capital ecosystem primarily concentrate on startups that fail to conform to a fund’s terms or strategy. However, it is also possible to market the SVPs to a broader spectrum of non-institutional investors.
Although OpenAI and the Startup Fund appear to be unrelated on a technical level, the latter came under intense scrutiny last year when it came to light that Sam Altman, the AI company’s CEO, had maintained legal control over the fund for an extended period. The CEO successfully obtained funding for the Fund from external limited partners, including Microsoft, an extremely close investor and partner of OpenAI.
While both Altman and OpenAI lack a financial stake in the Startup Fund, this fundraising effort assisted in granting him ultimate authority over the fund’s investments. A few weeks ago, Altman made a significant strategic move when he transferred formal control to Hathaway, a former investor with the venture capital firm Haystack.
Altman is preoccupied with his endeavors at OpenAI and Worldcoin. Both organizations are even contemplating a strategic partnership with Worldcoin, which is committed to establishing strategic alliances to increase its user base and strengthen its market position.
