Betaworks, a New York-based venture capital firm, has launched its third fund, Fund III, with $66 million earmarked for early-stage AI companies. The firm will target at least 25 AI startups through this fund. Betaworks has been an active investor in the AI space since 2016, with previous investments including Hugging Face and Granola.
Fund III is larger than Betaworks' previous funds, with Fund II raising $46 million in 2020 and Fund I securing $48 million in 2016. This new fund highlights continued investor confidence in Betaworks' vision, despite a challenging fundraising environment. Betaworks, originally founded in 2008 as a venture studio, has become a key player in New York's tech ecosystem, with notable past investments in companies such as Tumblr and Kickstarter.
