DFJ Raises $1.2 Billion for Largest Fund Yet
DFJ’s new fund targets AI, robotics, aerospace, and biotech amid continued growth-stage investment activity.
DFJ has raised $1.2 billion for its fifth flagship fund, marking the firm’s largest fund to date. Based in San Mateo, California, the venture capital firm is focusing this fund on sectors like artificial intelligence, robotics, aerospace, defense, and biotechnology.
This fund comes during an active period in these industries, with DFJ continuing to back companies that align with its long-term growth strategy. Recent investments include a $93 million Series B round in application security company Endor Labs, and a $65 million Series C for drone threat detection startup Hidden Level.
Founded in 2005, DFJ has built its strategy around helping private tech companies grow before going public. The firm anticipated that startups would need more capital as IPO timelines stretched—and that prediction has only become more accurate. With the IPO market still slow, more late-stage startups are seeking large funding rounds to maintain momentum.
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Over nearly two decades, DFJ has invested in at least 143 companies. Its portfolio includes major names like Tesla, SpaceX, Coinbase, Unity, and Anduril. Like any venture firm, DFJ has also faced losses, such as with virtual event platform Hopin and construction tech startup Katerra. However, the firm’s big successes have more than made up for these.
DFJ started with a $290 million fund in 2007 and raised $1 billion for its fourth fund in 2021. For this new fund, the firm initially aimed to raise $800 million but increased the target due to strong investor interest.