Feb 6, 2024 - Business
AI startup Runway is raising a venture capital fund
- Kia Kokalitcheva, author ofAxios Pro Rata
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.
- The crypto industry, for example, saw a number of its companies spin up venture arms.
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.