Betaworks’ third fund closes at $66M to invest in early-stage AI startups

New York City -based Betorks has closed its $ 66 million fund III, which will focus on investing in the early stage AI companies.

Betaworks have been investing in AI at least since 2016 and have supported companies such as Hugging Fes and Grenola through their investment program camp. Jordan Kruk, a partner of the firm (and former Techchunch employee), said the new fund will focus on agents, native AI interfaces and application-Lear AI.

“Around these subjects, we will continue directly seed investment and Betarks camps,” said Kruk.

Fund III will try to invest at least 25 pre-seeds for seed investment, as well as in the startup as part of the Betorks Camps program. “Thus, we have made around 37 deals,” Krook said, stating that the average check size was around $ 500,000.

Krook called the current money raising environment for startups as “fratthi” and “Spike” for funds, but said that Fund III saw many of the last limited partners of the firm returning to invest.

He said, “In 2024, the money raising atmosphere in the venture was challenging, and we were not giving discounts, seeing that we were increasing our funds,” he said.

Betorkes first raised $ 46 million fund II in 2020, and $ 48 million fund I in 2016. It was launched in 2008 as a venture studio, and has since become a head in New York City Tech Ecosystem, began its Betavors Camps program in 2016. Other notable investments of the firm are included.