SignalFire, a data-driven venture firm based in the Bay Area, has successfully raised $1 billion for its largest fund dedicated to applied AI companies. This raise boosts the firm’s total assets under management to $3 billion, reflecting confidence in its investment strategy. Founded 12 years ago, SignalFire’s strategy has been validated by the portfolio’s performance and scale, according to its founder, Chris Farmer.
The firm employs Beacon AI, a machine-learning platform that integrates operations across sourcing, picking, winning, adding value, and portfolio construction. Beacon AI monitors 80 million entities and 650 million people to detect traction anomalies, benchmark companies, and assist in portfolio success through talent recruiting and lead generation.
Over the next 2.5 years, the new fund will make approximately 100 pre-seed investments ranging from $100,000 to $1 million and 60 seed investments ranging from $1 million to $5 million. Series A and B funding will follow, with amounts between $5 million and $30 million, primarily targeted at companies initially funded at the seed stage. The XIR program will invest $15 million to $30 million in promising portfolio companies with $2 million to $10 million run rates, pairing experienced executives with emerging companies for growth.
SignalFire’s diverse portfolio includes sectors such as legal tech, cybersecurity, medical coding, and consumer-focused companies like Monarch Money and Whop. Notable past investments include EvenUp, Stampli, Horizon3.ai, Grow Therapy, and their largest exit, Frame.io, acquired by Adobe for nearly $1.3 billion.
The new limited partners include public pension funds, an Asian sovereign wealth fund, and financial institutions. Existing limited partners are made up of endowments, foundations, and family offices. This support underscores the strong industry reputation and investor confidence in SignalFire’s data-driven venture capitalism approach.
In summary, the substantial $1 billion fund for applied AI investments reinforces SignalFire’s strategic acumen and successful track record, positioning the firm to drive further innovation and growth in the AI sector.
