London’s Air Street Capital closes $232M fund to back AI startups

London-based venture capital firm Air Street Capital announced on Monday that it has closed its third fund, Fund III, at $232 million. Led by Nathan Benaich, the firm plans to deploy this capital to back early-stage artificial intelligence companies across Europe and North America. The fundraise establishes Air Street Capital as one of the largest solo VC funds in Europe. In the venture capital industry, a solo VC refers to a venture capital firm led by a single partner. The firm’s focus remains on early-stage investments within these geographic regions.

The firm’s investment strategy for Fund III focuses on early-stage AI startups. Air Street Capital will write checks structured as follows:

• Minimum check size: $500,000
• Maximum standard check size: $15 million
• Maximum growth investment check size: up to $25 million

Air Street Capital has already backed AI companies such as Black Forest Labs and ElevenLabs. The firm has also realized exits from its previous portfolio companies. These include the AI company Adept, which was acquired by Amazon, and the AI company Graphcore, which was acquired by SoftBank.

The close of Fund III brings Air Street Capital’s total assets under management to $400 million, the FT reported. Air Street Capital’s previous vehicle, Fund II, closed at $121 million, up from the firm’s debut vehicle, Fund I, which raised $17 million back in 2020.

Why it matters

The $232 million raise cements Air Street Capital’s position as one of the largest solo VC funds in Europe, signaling continued investor appetite for specialized, AI-focused investment vehicles. The growth of single-partner funds highlights a shifting landscape in how European and North American technology companies secure early funding.