Lux Capital Raises $1.5 billion for Fund Focused on New Science, Defense
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Article content(Bloomberg) — Venture firm Lux Capital raised $1.5 billion for its ninth fund — the largest in its more than 20-year history — with plans to back more companies that focus on fields like breakthrough science and national security. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe oversubscribed fund comes at a time of increased collaboration between Silicon Valley and Washington on areas including artificial intelligence, quantum computing and nuclear energy, deemed essential to the national interest. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentLux has been investing in many of these companies for years. The firm wrote some of the first checks into startups including weapons maker Anduril Industries Inc., robotic maritime drone company Saildrone Inc. and satellite company Astranis, all of which have government contracts. Those companies and others like them, could benefit from Pentagon procurement reforms announced in November by Defense Secretary Pete Hegseth, as the US aims to build more technology into its military and infrastructure. Article contentArticle content“We happen to be in the companies delivering this at a critical time,” said Lux Co-founder and managing director Josh Wolfe. “Many feel very confident that this will be a company-making next few years for some” startups.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentSince launching in New York in 2000 with a focus on health care, energy and space, Lux has expanded operations to Silicon Valley, investing early in AI, aerospace and defense, robotics, autonomy and biology. The latest fund is focused on frontier tech, defined as startups pursuing breakthroughs in physical, computational and life sciences. Article contentCarlyle Group co-founder Bill Conway, a longtime backer of Lux, said the firm’s partners have impressed him with their prescience. For example, they were early to identify nanotechnology as a promising investment during the early aughts.Article contentOne of Lux’s highest profile bets is defense startup Anduril. The firm invested in 2017 alongside backers including JD Vance, who was working as a VC at Revolution at the time. Chris Cassidy — director of private equity for the New Mexico State Investment Council, an investor in Lux’s latest fund — described the firm as “early and thoughtful” and “one of the leading investors in the defense space.”Article contentLux partner and co-founder Peter Hébert said the firm had more interest than it had space in the fund, turning away about $1 billion in investor dollars. He said Lux’s 10-person investor team will continue to put money in startups pursuing promising science, writing checks between $100,000 to $100 million.Article content“We want to do more of what we’re doing, but also accelerate the pace and double down on our winners,” he said. Article contentTrending Posthaste: Mortgage borrowers who held out for lower rates are paying the price News Cubans 'Scared and Nervous' After US Attack on Venezuela Destroys Morale PMN Business RBC CEO says he's 'more excited' about Canada's growth outlook than he has been in a decade Banking Scotiabank laid off 3,000 people late last year, CEO says Banking Fears that Canadian oil will be replaced by Venezuelan crude 'deeply overdone' News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Mortgage borrowers who held out for lower rates are paying the price News Cubans 'Scared and Nervous' After US Attack on Venezuela Destroys Morale PMN Business RBC CEO says he's 'more excited' about Canada's growth outlook than he has been in a decade Banking Scotiabank laid off 3,000 people late last year, CEO says Banking Fears that Canadian oil will be replaced by Venezuelan crude 'deeply overdone' News