Index Ventures just closed a $2 billion capital raise across three funds, but the story isn't just about the money. It's about how a 30-year-old firm is betting big on AI while resisting the industry's trend of ever-larger funds. Main Developments The firm announced Friday it secured $400 million for a new seed-focused fund and $900 million for its core venture fund. Index also topped up its growth fund with an additional $700 million, pushing that vehicle to $2.2 billion total. That growth fund addition builds on a $1.5 billion raise from 2024, giving Index $3.5 billion in total available capital. The latest haul follows a $2.3 billion raise two years ago, which included $800 million for a predecessor venture fund. Read also: VC-Backed Startups Face Higher Fraud Risk, Research Shows Rather than ballooning fund sizes like several peers, Index has kept its vehicles relatively lean. The strategy appears to be paying off, with the firm's recent exits drawing attention. Background Earlier this year, Index portfolio company Wiz completed its $32 billion sale to Alphabet. Index had backed Wiz at the seed stage and grew into its largest outside shareholder with a 12% stake. Reuters reported that stake was likely worth $3.8 billion at the time of the deal. Beyond Wiz, Index was an early investor in Figma, which went public last year. The firm's AI portfolio includes robotics company Physical Intelligence, inference platform Fireworks AI, and a position in Anthropic. That Anthropic investment came during a September capital raise that valued the AI model maker at $183 billion. Why It Matters Index's disciplined approach to fund sizing stands in contrast to competitors who have chased mega-funds. The Wiz exit demonstrates how early-stage bets on the right companies can deliver outsized returns. For startups, the fresh seed and venture capital signals continued appetite for early-stage AI and infrastructure plays. The firm's willingness to back companies at the seed stage, as it did with Wiz, remains a differentiator. What's Next With $3.5 billion now deployed across its funds, Index is positioned to make new investments across seed, venture, and growth stages. The firm's focus on AI-related opportunities is likely to continue given its recent bets. Whether Index maintains its restraint on fund sizes in future raises remains an open question, especially as it manages payouts from the Wiz sale.