Dallas-based venture capital firm Disruptive Technology Advisers has raised a $10 billion fund, its largest to date.
The fund plans to invest up to $1 billion each in about 10 growth or late-stage companies, the firm said. It cited artificial intelligence, AI infrastructure, defense and national security as areas where it sees significant business opportunities in need of large amounts of capital.
“The best private technology companies are growing larger, staying private longer and requiring more capital than ever before,” founder and CEO Alex Davis said in a statement announcing the new fund. “We have always focused on a small number of exceptional companies, building the conviction and relationships to be there for founders at their most important moments. The Disruptive Flagship Fund gives us the scale to match the opportunity.”
Responding to demand
The firm said it decided to create the Disruptive Flagship Fund in part at the urging of its limited partners. Previously, the firm raised money deal by deal. Investors were looking “for consistent access to the firm’s investments,” so it created the pooled fund.
Disruptive’s new fund is the largest in Texas. The firm’s investors include sovereign wealth funds, family offices and institutions. It has a growing investor base in North Texas.
A $10 billion fund is unusual but not unheard of. In January, Menlo Park, California-based Andreessen Horowitz said it had raised more than $15 billion across several funds. And in February, New York City-based Thrive Capital raised a $10 billion fund, which it plans to split between early- and late-stage investments.
About Disruptive
Davis, grandson of the late oil and entertainment investor Marvin Davis, founded Disruptive in Los Angeles in 2012. He moved the firm to Austin in 2021 and to Dallas in 2024.
The firm’s model has been to make large investments in private technology companies, typically in the late or growth stage of development. Some of its past and current portfolio companies include Airbnb, Databricks, ElevenLabs, Groq, Palantir, Stripe, Shield AI and Spotify.
In addition to its mega-fundraise, the firm recently made two C-suite changes.
In July, Disruptive hired Joy Royal as CFO. Royal had spent nearly two decades in senior finance leadership roles at Los Angeles-based Oaktree Capital Management. And in May, it named Brunswick Group alum Ash Spiegelberg as its chief strategy officer.
R E A D N E X T
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Flexcar says it’s disrupting a $110 billion industry “by providing customers a better alternative to car ownership.”
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Set for Thursday, Oct. 22, the sixth annual venture capital and technology event connects investors, founders and innovators.
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