QuantumLight, a VC firm co-founded by Nik Storonsky and Ilya Kondrashov, has closed its first fund at US$250 million, surpassing its US$200 million target.

The fund drew backing from tech founders, family offices, and financial institutions, with 25% coming from its co-founders.

QuantumLight, launched in 2022, focuses on early-stage startups using AI and algorithmic tools for deal sourcing.

So far, the firm has invested in 12 startups, including US-based Rad AI and MarqVision, and plans to allocate $30–$60 million in upcoming deals.

The 23-person team includes experts from Sigma AI, Meta, and Revolut, using data-driven m

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ The exponential growth of AI funding creates an intensely competitive landscape

QuantumLight’s $250 million fundraise appears amid a historic surge in AI investment, where funding has grown nearly 600% from 2015 to 2019 alone 1.

This trend has only accelerated, with AI startups raising over $100 billion in 2024—nearly double the previous year—and capturing 46.4% of all U.S. venture capital funding 2.

For perspective, when AI venture funding reached $5 billion in 2016, it was considered groundbreaking; today’s figures are 20 times larger 3.

This massive capital influx creates both opportunity and challenge for new AI-focused funds like QuantumLight, as they must compete with entrenched players like Sequoia Capital and Andreessen Horowitz who have dramatically expanded their AI portfolios 2.

The oversubscription of QuantumLight’s fund (initially targeting $200 million) reflects continued investor confidence in AI despite the increasingly crowded market where valuations have seen a 2-3x increase over five years 4.

2️⃣ AI-powered venture capital represents the meta-trend of technology investing in itself

QuantumLight’s approach of using algorithms and artificial intelligence to select investments represents a significant evolution in how venture capital operates.

The firm’s strategy addresses a fundamental challenge in venture investing—approximately 90% of bets from even the best VCs fail, according to Kondrashov’s assessment.