Battery Ventures Bets Big on Software Amid AI Hype

Global investment firm Battery Ventures has announced the closure of a new $3.25 billion fund, Battery Ventures XV. This significant capital raise underscores the firm's commitment to investing in technology deals, particularly within the software sector. Despite growing concerns about artificial intelligence potentially disrupting traditional tech companies, Battery Ventures remains optimistic about the resilience and future success of software businesses.

The fund will target investments across various categories including software applications and infrastructure, which encompasses AI, developer tools, and cybersecurity. Additionally, Battery Ventures will explore opportunities in industrial technology and life sciences. This new fund is comparable in size to its predecessor, raised in 2022, and reflects the firm's consistent strategy.

Battery Ventures, based in Boston with additional offices in London and Tel Aviv, has a strong track record, having generated over $10 billion in returns for its partners in the past five years. The firm has invested in over 530 companies since its inception in 1983, leading to more than 70 public listings and numerous acquisitions.

Speaking on the market's reaction to AI, Battery general partner Michael Brown stated that the recent selloff in software stocks is an overreaction. He believes that many established software companies are actively adapting their business models to integrate AI, ensuring their continued success. The firm is strategically avoiding direct competition with major AI large language model developers.