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← Value Add PulseFUNDING$500M target (Fund II)

Chemistry Ventures Raising $500M for Second Fund

Chemistry Ventures, the AI-focused firm founded by Bessemer, Index and a16z alumni, is raising $500 million for its second fund -- already oversubscribed just two years after its $350 million debut.

$500 million
New fund target
$350 million
Debut fund
2024
Founded
Oversubscribed
Status
TC
Trace Cohen
Early-stage VC & angel · Founder, New York Venture Partners
July 7, 2026
1 min read
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THE RUNDOWN
1

Chemistry Ventures is raising $500 million for its second fund, according to an SEC filing, up from its $350 million debut fund two years ago

2

The firm was founded by Mark Goldberg, Ethan Kurzweil and Kristina Shen -- alumni of Index Ventures, Bessemer and Andreessen Horowitz, respectively -- and invests in early-stage AI infrastructure and application startups

3

The Wall Street Journal reports the new fund is already oversubscribed and expected to close soon, a sign of continued LP appetite for early-stage AI-focused vehicles even as some generalist funds struggle to raise

4

The raise lands the same week Recast Capital's Sara Zulkosky warned that 80% of US venture capital now flows to rounds of $500 million or more across just 29 companies -- exactly the concentration emerging and early-stage-focused firms like Chemistry are betting against

TC
The VC Read · Trace's TakeTrace Cohen

An oversubscribed $500M close on a two-year-old firm's second fund, with zero long-term track record to point to, is really an LP bet on three individual brands from Index, Bessemer and a16z -- not on Chemistry's own results yet. That's fine when the vintage performs, but it's exactly the kind of pattern-matching that got over-allocated in the 2021 cycle. Emerging-manager LPs should ask what Chemistry's actual DPI looks like before writing the next check, not just who founded it.

Chemistry Ventures is raising $500 million for its second fund, according to an SEC filing spotted July 7, up sharply from the $350 million it raised for its debut vehicle roughly two years ago. The Wall Street Journal reports the new fund is already oversubscribed and expected to close soon.

The firm was founded by Mark Goldberg (ex-Index Ventures), Ethan Kurzweil (ex-Bessemer) and Kristina Shen (ex-Andreessen Horowitz), and invests at the early stage across AI infrastructure and application startups. Launching with instant brand recognition from three well-known individual investors is itself a template that's become common in the 2024-2026 cycle, alongside similar spinout funds from Thrive, General Catalyst and Conviction.

The timing matters: Chemistry's raise lands in the same week Recast Capital managing director Sara Zulkosky warned that 80% of US venture capital now flows to rounds of $500 million or more spread across just 29 companies -- a concentration that early-stage specialist funds like Chemistry are implicitly betting reverses, or at least that enough breakout companies still get discovered pre-megaround to make the strategy work.

For LPs, a quick, oversubscribed close on a fund nearly 43% larger than its predecessor -- without yet having a long track record to point to -- is itself a data point about how much capital is chasing access to any recognizable early-stage AI brand right now, regardless of realized returns.

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Originally reported by TechCrunch. Analysis and editorial commentary by Value Add Pulse.

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@Trace_Cohen·t@nyvp.com