Accel raises $3.5B for AI startups

Accel-KKR, a global venture capital firm, announced it has raised $3.5 billion across four new funds dedicated to early-stage investments worldwide. The funds include a $1.35 billion global expansion fund for larger early-stage rounds and follow-on investments, $800 million for US investments (primarily United States — Silicon Valley), $800 million for Europe and Israel, and $550 million for India. This fundraising comes amid an AI investment boom, with Accel-KKR having backed AI companies such as Anthropic, Cursor, and Perplexity AI. The firm also recently raised $5 billion for late-stage investments. Accel-KKR partner Harry Nelis noted that startups are raising larger amounts earlier in their lifecycle. The firm is expanding its focus beyond software into deep tech sectors like material science and manufacturing. Additionally, Accel-KKR participated in a $300 million seed round for Periodic Labs, an AI scientific discovery platform valued at $1.3 billion. Daniel Levine, a prominent early-stage investor, will no longer make new investments for Accel-KKR but remains a partner.