Benchmark Capital, known for backing startups like eBay and Twitter, is breaking its decades-old tradition of small fund sizes to invest in larger growth opportunities. The firm is raising $2 billion across two new funds, including a $1.25 billion vehicle dedicated to later-stage investments.

This shift allows Benchmark to participate in capital-intensive AI projects, something previously unfeasible due to their smaller fund size. While they've had mixed success with AI ventures, recent investments like Gumloop and Monaco show a broader strategy.

The changes extend beyond finances; General Partners Sarah Tavel and Victor Lazarte left for other ventures, replaced by high-profile additions Randle from Kleiner Perkins and Jack Altman, brother of OpenAI’s Sam Altman. This suggests Benchmark sees the future in more capital and fresh talent.

Despite these adjustments, Benchmark remains selective, aiming to build deep relationships with startups early on. The firm's $750 million early-stage fund will give them greater flexibility as valuations rise. Meanwhile, their dedicated growth fund will make larger investments in both existing and new portfolio companies.