Lux Capital, a venture capital firm specializing in frontier science and defense technology, secured $1.5 billion for its ninth fund, marking the largest in the firm's 25-year history. The successful fundraise underscores continued investor confidence in Lux's investment strategy, particularly in the face of a challenging fundraising environment for venture capital firms.

The $1.5 billion fund will enable Lux to continue its focus on early-stage investments in sectors like defense technology and artificial intelligence. The firm's previous investments have yielded significant returns, demonstrating its ability to identify and support companies with disruptive potential. Notably, Lux was a seed-stage investor in Anduril, a defense technology company last valued at $30.5 billion, and Applied Intuition, an autonomous vehicle startup that has secured contracts with the Pentagon and reached a $1.5 billion valuation last year.

Lux's success comes at a time when the venture capital landscape is becoming increasingly competitive. According to PitchBook data, 2025 is projected to see a 10-year low in the number of new VC funds raised in the U.S. However, Lux's early entry into the now-hot defense tech sector, coupled with prescient bets on AI startups, has positioned it favorably. The firm's AI portfolio includes Hugging Face, Runway AI, and MosaicML, the latter of which was acquired by Databricks for $1.3 billion in 2023. These investments highlight Lux's ability to anticipate and capitalize on emerging technological trends.

Founded 25 years ago, Lux Capital has built a reputation for backing companies pushing the boundaries of science and technology. Its investment thesis centers on identifying and supporting entrepreneurs developing solutions to complex problems in areas such as healthcare, energy, and national security. The firm's early investments in companies like Recursion Pharmaceuticals, an AI drug discovery company that went public in 2021, and Auris, further solidify its standing as a shrewd investor in deep tech.

Looking ahead, Lux Capital is poised to continue its focus on early-stage investments in frontier technologies. With its new $1.5 billion fund, the firm is well-positioned to capitalize on the growing demand for innovative solutions in areas like defense, AI, and biotechnology. The firm's track record of identifying and supporting successful companies suggests that it will continue to play a significant role in shaping the future of these industries.