Floating Point has raised $125 million for its third venture fund, bringing the technology investment firm’s assets under management to more than $300 million. And Floating Point launched five years ago around a thesis that many of the next generation’s most significant technology businesses would look different from traditional software companies.
Rather than investing only in businesses selling software products, the firm targets companies that use technology as an advantage within operationally, financially, physically or regulatorily complex industries.
Floating Point sees these businesses as capable of becoming increasingly valuable as new waves of technology emerge because software and AI can improve core operations without necessarily replacing the underlying business.
The firm’s strategy therefore focuses on companies that can be both AI-first and resilient to AI disruption.
Floating Point said founders in these categories often tackle extremely large markets, even if their business models can initially be more complicated to build and explain.
Fund III represents the firm’s latest commitment to that investment approach and gives Floating Point additional capital for companies combining technology with complex real-world operations.
KEY QUOTES:
“We started Floating Point five years ago with the belief that the next generation of great technology companies would look different from the last. Our answer was to embrace complexity, to go beyond selling software, and instead build a technology edge into the operational, financial, regulatory, and physical capabilities needed to transform an industry from the inside.”
“These companies are harder to build and sometimes harder to explain. But the founders are exceptional, the markets are enormous, and the businesses become stronger with each new wave of technology, AI-first and AI-proof at the same time. Fund III is our conviction that these companies will shape the next decade and beyond.”
Floating Point statement
