AI Gets $435M Fundraising Boost From Emergence Capital

Emergence Capital has raised a $435 million fund to invest in companies that use artificial intelligence (AI) to help people increase their work productivity.

Founded in 2003, San Francisco-based Emergence’s early thematic investments were in SaaS and industry-focused Cloud companies, as well as in technology for field and remote workers. The company was an early investor in companies like Salesforce, Box, Zoom, and Service Box.

“Emergence was our first Silicon Valley-based institutional investor and in the three-plus years we’ve partnered with them, they have helped us grow from a small startup to over 1,000 employees,” said Eric S. Yuan, founder and CEOo of Zoom.

Now Emergence’s new focus is on companies that help workers learn from the best, called “Coaching Networks.” The company will use the funding to boost its investment in companies that empower workers to become more productive using machine learning (ML).

“Machine learning and AI are the fabric of the next generation of software and are driving a sea change for all workers globally,” Gordon Ritter, co-founder and general partner, said in a press release. “Emergence will invest in companies that dramatically improve human productivity, helping us all stay ahead of the AI wave that is coming. By funding these companies, we’re not just investing in entrepreneurs, we’re investing in all workers — making this next software era far more valuable than even the cloud revolution.”

This is Emergence Capital’s fifth fund. In 2015, Emergence raised a $335 million fund for investments in enterprise startups centered around SaaS, mobile tech, and cloud infrastructure.

“Emergence Capital’s investment model will continue to be successful because it allows us to partner with startups early on, to add value throughout their growth and to win big in the long term,” said Jason Green, co-founder and general partner. “We’re now in an era of mega-sized Series C and D rounds, and Emergence is filling the void in early-stage investing, while meeting the demand from entrepreneurs who want to work with focused venture firms.”