Anthropic Demands Direct Capital for $170 Billion Funding Round, Curtailing SPV Use

San Francisco, CA – Artificial intelligence leader Anthropic has instructed venture capital firm Menlo Ventures to utilize its own capital for investment in the current funding round, moving away from the Special Purpose Vehicle (SPV) structure employed in a previous round. This directive signals Anthropic's increased leverage in the booming AI investment landscape, as the company seeks to raise approximately $5 billion at a staggering $170 billion valuation.

The shift in investment preference was highlighted by Techmeme, stating: > "Anthropic asked Menlo to use the VC firm's own capital for investment in the startup and not an SPV, as Menlo did in a previous funding round." This move reflects a growing sentiment among highly sought-after AI startups to dictate terms amidst intense investor demand.

Anthropic's decision stems from a desire for direct relationships with investors and to avoid issues associated with SPVs, which have seen complaints of high fees and multi-layered structures. While SPVs can facilitate investments from a broader range of participants, they are often viewed as less desirable by companies preferring a more direct and streamlined capital inflow.

The AI startup, known for its Claude models, has experienced remarkable growth, with annualized revenue reaching an estimated $3-4 billion by mid-2025, a significant jump from $1 billion in late 2024. This rapid financial expansion, primarily driven by enterprise demand for its AI solutions, particularly in code generation, has put Anthropic in a strong negotiating position.

Menlo Ventures had previously led a $750 million investment in Anthropic in late 2023, where a substantial portion of the capital was raised through an SPV due to the large sum. In the current round, Menlo's commitment is expected to be smaller, around $120 million, reflecting Anthropic's ability to be more selective with its capital sources.

The broader AI market is witnessing a "feeding frenzy" for ownership, leading to a proliferation of SPVs, some of which have been criticized for excessive fees and a lack of direct company relationship. Anthropic's stance underscores a strategic pivot towards quality over quantity in its investor base, preferring tier-one VCs committed for the long haul.