Index Ventures has captured super returns over the past 30 years, starting from Europe, by following a "from seed to IPO" model: early heavy investments in Figma yielded over $2 billion in paper gains post-IPO, Wiz achieved multiple exits before being acquired by Google, and companies like Revolut, Datadog, and Roblox have also contributed significantly to DPI, proving the effectiveness of its transatlantic network and long holding periods.

This fundraising will inject new capital directly into the entire chain from seed to growth, especially increasing the size of the seed pool and upsizing the growth fund, motivated by the desire to lock in a new wave of opportunities from 0 to 1 brought by AI, while maintaining sufficient dry powder to respond to later valuation fluctuations and keeping follow-on investments and control over top founders.

In comparison to a16z and Sequoia, which are also raising large funds but focusing more on single themes, Index is in a mature stage of "full-stage coverage + geographical neutrality," not limited by check size like pure early-stage funds, nor missing out on early alpha like pure growth funds.

Essentially, this represents capital concentration: as AI reshapes the entrepreneurial cost curve, top VCs further concentrate quality deal flow and pricing power through larger fund sizes, drawing resources away from dispersed small and medium funds, accelerating the industry's convergence towards a few institutions that can provide full-cycle support from the first check to IPO.

ABAB News · Law of Cognition

Capital ultimately flows to those who can run the longest.
The larger the fund, the more it serves the scarce.
Those who raise funds at the bottom of the cycle often define the next cycle.