Section 32, a venture firm founded by ex-Google Ventures CEO Bill Maris, has successfully closed on a new fund worth $525 million in capital commitments. With this latest fund, the firm now has $2.3 billion in assets under management. The primary goal is to invest in software-driven businesses in the technology and healthcare sectors that have a positive impact on humanity.
Section 32 has a track record of backing successful startups that have later gone public, such as Crowdstrike, Coinbase, and Relay Therapeutics. This new fund will be allocated towards both early-stage investments and follow-on opportunities. The firm has already invested in around 100 startups across various industries, including cybersecurity, gaming, enterprise, quantum and precision medicine, computational biology, and even an EV boat startup called Arc.
Key Takeaway
Venture firm Section 32, founded by former Google Ventures CEO Bill Maris, has closed a $525 million fund. The firm, which now has $2.3 billion in assets under management, focuses on investing in software-driven businesses in the tech and healthcare sectors that have a positive impact on humanity. Section 32 has a diverse portfolio of approximately 100 startups across various industries, with a particular emphasis on AI applications.
One of Section 32’s key investments is Cohere, a company developing an AI model ecosystem for enterprises, which raised $270 million at a $2.1 billion valuation in June. Other highly valued portfolio companies include Scale AI, valued at $3.5 billion in 2020, and HR tech firm Gusto, which generated over $500 million in revenue in its most recent fiscal year after being valued at nearly $10 billion in 2022.
Section 32 aims to invest primarily in the application side of AI, concentrating on areas such as cybersecurity, computational biology, and other verticals that may not be the main focus for larger companies like Google and Microsoft. The firm believes in avoiding the commoditization of AI and instead focuses on specific use cases where they can provide value.
With the closing of this latest fund, Section 32 has also announced the promotion of Wesley Tillu from a senior principal to partner. Tillu, who joined the firm from In-Q-Tel, the venture capital arm of the CIA and U.S. intelligence community, will play a key role in identifying and supporting promising investments.
Section 32 has already made several new investments from its new fund, and the firm remains committed to making a positive impact by investing in innovative startups that are at the forefront of technology and healthcare.
