Section 32 Closes On $525 Million Fund Amid Warning of AI Investment Pitfalls
Section 32, a venture firm founded by ex-Google Ventures CEO Bill Maris, has closed on $525 million in capital commitments across its fifth fund. This marks a significant milestone for the Palo Alto-based firm, which now has $2.3 billion in assets under management.
Early-Stage Investments and Follow-On Opportunities
A portion of the capital will go toward early-stage investments, while the remaining will be reserved for follow-on opportunities. Section 32’s strategy is to invest in software-driven businesses in tech and healthcare that improve the human condition.
Notable Exits Over Its Six-Year History
The firm has seen a number of notable exits over its six-year history. It invested in a number of startups that eventually went on to become publicly traded companies, including:
- CrowdStrike, which went public in 2019
- Coinbase, which made its public debut in 2021
- Relay Therapeutics, which took to the public markets in 2020
Portfolio Companies
Section 32 has now backed about 100 startups across a variety of software-driven industries, including infrastructure, cybersecurity, gaming and brand experiences, enterprise, quantum and precision medicine, and computational biology. Some of its most highly valued portfolio companies currently include:
- Cohere, which is developing an AI model ecosystem for the enterprise and raised $270 million at a $2.1 billion valuation in June
- Scale AI, which was valued at $1.5 billion after raising $220 million in funding
- Other startups that have received significant investments from Section 32
Promotion of Wesley Tillu to Partner
In conjunction with the new fund announcement, the firm also shared that it has promoted Wesley Tillu from senior principal to partner. Tillu joined Section 32 in 2021 from In-Q-Tel, the venture capital arm of the CIA and U.S. intelligence community.
Conclusion
Section 32’s fifth fund is a testament to its commitment to investing in innovative startups that have the potential to make a significant impact on society. With $525 million in capital commitments, the firm is well-positioned to continue its success in the venture capital space.
About Section 32
Section 32 is a venture firm that invests in software-driven businesses in tech and healthcare that improve the human condition. Founded by ex-Google Ventures CEO Bill Maris, the firm has established itself as a leader in the venture capital industry.
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