OpenAI Startup Fund, which is related but operationally a distinct offshoot of the popular Artificial Intelligence (AI) company OpenAI, has secured $15 million in a funding round.

OpenAI Startup Fund Taps Funding Through SPV

The filing with the United States Securities and Exchange Commission (SEC) confirmed that the funds were raised in new cash on or around April 19th. However, it was not until April 25 that the paperwork was submitted.

Markedly, the $15 million tranche was raised by two investors whose names are yet to be made public. Although Ian Hathaway, the OpenAI Startup Fund’s manager and sole partner was mentioned casually in the filing.

To facilitate the pooling of funds, all capital was transferred to a special purpose vehicle (SPV) dubbed OpenAI Startup Fund SPV II, L.P. This marks the second time that the OpenAI Startup Fund is raising capital via an SVP. During the first time, $10 million was generated. Ordinarily, investors who utilize such SVPs are able to bring their resources together in a pool and then make a tangible investment in one company or Fund. 

Startups that do not fit a fund’s strategy or do not align with a fund’s terms are the main target for SVPs in the venture capital ecosystem. Still, the SVPs can also be marketed to a wider range of non-institutional investors.

Sam Altman To Focus on OpenAI and Worldcoin 

While OpenAI and the Startup Fund seem to be technically separate, the latter faced severe scrutiny last year after it was discovered that Sam Altman the CEO of the AI company had long legally controlled the fund. Precisely, the CEO secured capital for the Fund from outside limited partners, including Microsoft, a very close OpenAI partner and investor. 

This fundraiser contributed to giving Altman the final say in the fund’s investments, even though neither him nor OpenAI has a financial interest in the Startup Fund. A few weeks ago, Altman took the bold step of transferring formal control to Hathaway, who was previously an investor with the VC firm Haystack.

Altman is currently focused on the works that he is doing at OpenAI and with Worldcoin. Both companies are even considering a strategic partnership with Worldcoin focused on its mission to forge strategic alliances as a means to broaden its user base and solidify its position in the market.

The post OpenAI Backed Startup Fund Pulls $15M In New Funding appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am