Accel announced Tuesday it raised $5 billion in new capital dedicated to backing late-stage companies building AI products. The fund signals continued investor confidence in mature AI startups seeking growth capital.
The $5 billion raise expands Accel's firepower to support companies beyond the seed and Series A stages, where most venture firms concentrate their efforts. The capital targets late-stage AI developers—typically Series C and beyond—that have demonstrated product-market fit and require substantial funding for scaling.
Accel joins other major firms in establishing dedicated AI-focused funds as enterprise adoption accelerates. The move reflects a broader shift in venture capital toward later-stage investments, where competition for proven startups intensifies.
The firm's decision to raise specifically for late-stage bets suggests a maturing AI market where founders increasingly bypass smaller rounds in favor of larger capital infusions. Accel's fund size positions it to lead or co-lead substantial financing rounds among AI companies seeking to expand engineering teams, geographic reach, and infrastructure.
Reno-based AI chip startup Positron is in talks to raise approximately $750 million across two funding phases, with valuations climbing from $3.5 billion to $5 billion, according to Bloomberg sources.
AI coding platform Lovable is in talks to raise $300 million at a $13.2 billion valuation, doubling its previous valuation. Menlo Ventures is expected to lead the funding round.
Autonomous drone delivery startup Manna is establishing a U.S. operations and manufacturing facility in Tulsa, Oklahoma. The expansion will eventually create 1,000 jobs.