London-based venture capital firm Air Street Capital has raised $232 million for its third fund, positioning itself among the largest solo general partner (GP) venture funds in Europe. The new fund will primarily focus on backing early-stage artificial intelligence startups across Europe and North America, reflecting the continued surge in AI-focused investments.
Founded by Nathan Benaich, Air Street Capital has built a strong reputation for investing in AI-first companies at early stages. With this latest raise, the firm plans to deploy initial investments ranging from $500,000 to $15 million, while reserving capital for follow-on and growth-stage investments of up to $25 million in select cases.
The fund marks a significant step up from the firm’s previous raises, with Fund II closing at $121 million and its first fund at just $17 million in 2020. Following this round, Air Street Capital now manages approximately $400 million in assets, highlighting its rapid growth alongside the expanding AI ecosystem.
Air Street has already backed several prominent AI startups, including Black Forest Labs and ElevenLabs, and has seen notable exits such as Adept, which was acquired by Amazon, and Graphcore, acquired by SoftBank. These successes have strengthened its position as a specialized investor in the AI domain.
The launch of Fund III underscores a broader shift in the venture capital landscape, where solo investors with deep domain expertise are increasingly competing with traditional multi-partner firms. By focusing on high-conviction, early-stage AI bets, Air Street Capital aims to capitalize on the growing demand for specialized funding in next-generation technologies.
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