Feb 6, 2024 - Business

AI startup Runway is raising a venture capital fund

Illustration of a robot with a dollar sign screen on its face

Illustration: Sarah Grillo/Axios

Runway, an image and video-focused generative AI company, is raising a $10 million fund to invest in early-stage AI startups, per an SEC filing and a source close to the company.

Why it matters: This could help Runway expand its AI industry network.

The big picture: Startups raising VC funds for other startups has become a common trend when new technologies begin to boom.

Between the lines: Raising a separate fund is likely to be received well by Runway's investors since it won't be using its balance sheet — that is, their capital — for its venture investments.

Runway, which has raised over $250 million from firms like Alphabet and Nvidia, didn't respond to a request for comment.

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