When I co-founded SignalFire over a decade ago, the idea of using AI and data analytics to drive venture capital decisions was considered radical—some even said crazy. But here we are in 2025, having just closed our largest fundraising round ever, securing over $1 billion in fresh capital. This milestone brings our total assets under management to approximately $3 billion.
What makes this moment so significant isn’t just the numbers. It’s the fact that some of the world’s most respected institutional investors, including CalPERS, have embraced our approach and invested in our vision. If there’s one thing I’ve learned, it’s that venture capital is evolving—and we’ve been ahead of the curve since day one.
The Vision Behind SignalFire’s AI-Driven Investing Strategy
When we launched SignalFire in 2015 with a $53 million fund, the prevailing belief in the industry was that early-stage companies didn’t generate enough data for algorithms to be effective. But we believed otherwise.
Our belief was simple: If we could integrate AI deeply into every phase of the investment lifecycle—from identifying promising founders to providing value post-investment—we could outperform traditional VCs that still relied heavily on personal networks and gut feelings.
Fast forward to today, and data-driven venture investing is no longer niche. It's the new standard. But we didn’t just adopt the trend; we pioneered it.
How SignalFire Uses AI at Every Stage of Venture Investing
We’ve built proprietary tools that help us scout founders and startups using real-time signals like developer activity, hiring trends, and social media traction. But the tech isn’t just about sourcing deals. We support our portfolio companies with AI-powered tools in areas like recruiting, go-to-market strategy, and even product marketing.
This holistic integration of AI sets us apart. Other firms might use analytics platforms to assess startups after first contact. We use ours to find them before anyone else does.
Why Big Institutional Investors Are Betting on Us
Raising a $1B+ fund in today’s venture landscape is no small feat. Many of our peers are scaling down. But our focus on early-stage, sector-specific AI startups—particularly in healthcare, cybersecurity, infrastructure, and consumer sectors—is proving irresistible to large LPs.
These investors want scalable, long-term relationships. Most seed-stage VCs can’t offer that—they raise a few small funds, get acquired, or pivot. We offer something different: a sustainable, data-backed strategy that allows big institutions to enter the seed-stage arena without compromising on scale or staying power.
CalPERS, the largest pension fund in the U.S., recently committed $100 million to us for the first time. That’s a testament to our credibility and our model’s resilience.
We’re Betting Big at the Seed Stage—and We’re Not Playing Small
Most seed-stage firms write modest checks. We don’t. We’ve invested as much as $100 million into individual companies we believe in—because our conviction runs deep, and our fund size allows us to scale with the companies we back.
Unlike traditional multi-stage firms that wait until Series A to jump in, we lead at seed and continue to support our portfolio as they grow. This gives us a competitive edge and keeps us close to founders from day one.
Our Portfolio Speaks for Itself
Sure, we haven’t had a flood of exits yet—but the signals are strong. Our early investments include:
- Grammarly – Last valued at $13 billion
- Grow Therapy – Raised $88 million Series C led by Sequoia
- EvenUp – An AI-driven legal software startup now valued over $1 billion
These wins didn’t come from luck. They came from the predictive power of our data models and the strength of our support system.
Why We’re Steering Clear of Foundational AI Model Startups
You might expect us to be all-in on foundational AI model builders. But we’re not.
Here’s why: The pace of innovation in foundational models is relentless. Every few weeks, a new model outperforms the last. That makes defensibility incredibly difficult.
Instead, we focus on startups that apply AI in deep, specific verticals where the technology is harder to replicate. EvenUp, for example, operates in a niche with virtually no competitors. That’s the kind of defensibility we love.
What Comes Next for SignalFire?
With this new capital, we’re doubling down on our strengths. We’ll continue investing in:
- AI-driven healthcare and pharma startups
- Developer tools and infrastructure plays
- Consumer tech with unique data moats
- Cybersecurity platforms using machine learning for threat detection
Our mission is clear: back the best founders early, support them with real tools and data, and keep backing them all the way.
SignalFire is no longer just an experiment in data-driven venture capital. We’re an established manager, a trusted partner for LPs, and a magnet for founders who value smart money and smart systems.
Thirteen years ago, I was told this model wouldn’t work.
Today, the results—and the capital—say otherwise.
Post a Comment