Anthropic Backers Sit on Billions Ahead of Expected Listing

Anthropic is preparing for a public listing that could value the AI firm as high as $2 trillion, a milestone expected this year. Even before any shares trade publicly, the company's private market valuation of $965 billion has already generated massive wealth for its backers, according to Bloomberg. Early-stage investors and later-stage venture capital firms are both positioned for significant gains when the offering occurs.

Former Google CEO Eric Schmidt has seen his stake become particularly valuable. He invested in Anthropic's Series A round back in 2021, a time when the startup was valued at $461 million. Today, Schmidt owns roughly 1% of the company. At the current private valuation, that holding is worth nearly $10 billion. This represents a substantial return on an investment made during the company's early years.

Some investors joined the company much later in its growth. Iconiq, an investment firm, wrote a $6 billion check to Anthropic last year when the company was already valued at $183 billion. That late-stage investment is now worth $17 billion, and reports suggest the value could potentially double if the company's valuation reaches $2 trillion at the IPO. Menlo Ventures, which led Anthropic's Series D round and invested more than $1 billion in total, currently holds a stake valued at $14 billion.

Sequoia Capital, a prominent venture capital firm, entered the picture only earlier this year. The firm invested $3 billion in Anthropic when it was valued at $380 billion. This investment granted Sequoia about 1% ownership of the company. With Anthropic's current private valuation of $965 billion, Sequoia has already more than doubled its initial investment. The firm is now positioned to see even greater returns should the company's valuation increase further.

Other firms have also benefited from earlier entry into the company's funding rounds. Sound Ventures, a firm founded by Guy Oseary and actor Ashton Kutcher, invested $35 million in Anthropic's Series C round in 2023. The firm has since added an additional $400 million in funding, and its stake is now valued in the billions. Kutcher departed Sound Ventures this year to launch his own new venture capital firm.

Spark Capital, the only venture capital firm known to hold a board seat at Anthropic, also participated in the 2023 Series C round. The firm invested $75 million when the company's valuation stood at $5 billion. That investment has since grown more than ninetyfold to a value of $7 billion. The company's private valuation has surged to $965 billion, setting the stage for a potentially massive payout for these investors.

The expected public listing later this year is anticipated to create a windfall for a wide range of investors, from those who participated in early funding rounds to those who invested much more recently. The current high valuation suggests that the company's backers have already realized substantial gains, with the potential for much more if the IPO meets its lofty valuation target. The firm's transition to a public company would mark a major event for the artificial intelligence sector.