Emergence Capital, a California-based venture capital firm known for backing next-gen B2B companies, has announced the close of its seventh fund (Emergence VII), securing $1 billion. The new fund reflects its commitment to identifying transformative technologies that shape the future of work, with a particular focus on AI adoption and enterprise innovation. Previously, the VC closed its sixth early-stage fund with $575 million in 2021.
The firm’s investment philosophy has evolved significantly over the years, driven by a founding belief that the most important companies of our time would be those transforming how the world works. This disciplined approach involves each partner investing in just one company per year, ensuring an extraordinary level of attention and support for their portfolio companies.
AI as the catalyst for the next wave of B2B transformation
With Emergence VII, the firm is doubling down on AI as a driving force in the next phase of enterprise transformation. It recognises that AI is not just an enhancement but a fundamental shift that will redefine how businesses operate, unlock new value from data, and enable richer, more personalised experiences across various mediums—text, voice, and video. By fusing AI with human expertise, the VC firm believes that businesses can achieve faster, better, and more cost-effective outcomes while expanding the boundaries of what’s possible.
The timing and scale of Emergence VII reflect broader market dynamics in AI funding. In 2024, AI startups captured an unprecedented 46.4% of US venture capital funding, with global AI funding hitting a record $100.4 billion. The first month of 2025 alone saw AI companies secure $5.7 billion, accounting for 22% of overall venture funding. This fund represents a notable jump from Emergence’s sixth fund of $575 million announced in 2021, positioning the firm to compete effectively in a market dominated by mega-rounds.
Emergence has already demonstrated its prowess in identifying breakout AI companies, including Together AI, Bland, and Bolt.new, all of which are at the forefront of applying AI to solve pressing enterprise challenges. With the launch of its seventh fund, Emergence is poised to back early-stage founders building the next generation of AI-driven category leaders.
Together AI recently raised $305 million in Series B funding at a $3.3 billion valuation, establishing itself as a leading “AI Acceleration Cloud” with customers including Salesforce, Zoom, and The Washington Post. Bolt.new secured $105.5 million in Series B funding led by Emergence and GV, creating an AI-native, browser-based development platform that empowers non-developers to build applications using natural language.
A vision for long-term impact: investing in companies that unlock new value from data
Founded in 2003 by Gordon Ritter and Jason Green, the VC firm’s leadership believes that AI will redefine enterprise solutions over the coming decade. By investing in companies that unlock new value from data, accelerate the speed of business, and enable richer interactions across multiple formats, Emergence aims to foster a new wave of AI-powered B2B innovators.
The fund’s strategic focus revolves around four main categories: AI-powered workflows, data-driven insights, human-AI collaboration, and personalised customer experiences. This way, the fund targets startups that streamline and automate complex business processes, reducing manual effort while increasing efficiency and accuracy. Companies leverage AI to extract actionable insights from vast enterprise data, enabling more intelligent decision-making.
Plus, in the focus, some solutions seamlessly integrate AI and human expertise to enhance productivity and improve outcomes across industries. For instance, AI-driven platforms provide tailored experiences to end-users, enhancing customer satisfaction and loyalty.
Emergence’s commitment to long-term partnerships with portfolio companies is a hallmark of its approach. Even though Zoom went public in 2019, Emergence partner Santiago Subotovsky remains on the board as the only pre-IPO VC still involved. Zoom founder Eric Yuan describes Emergence as “more like a basketball team than an NFL team… a smart, small team, and the beauty of a small team is that you know they all want to support you”.
Emergence Capital has built a reputation for identifying and scaling category-defining cloud companies. With investments in companies like Salesforce, Zoom, and Bill.com, it has generated over $8 billion in returns for its investors. Impressively, 1 in 5 of its early-stage bets have crossed the $1 billion valuation mark, demonstrating its ability to identify high-potential startups and guide them toward success.
The firm’s success has also yielded significant philanthropic benefits. Emergence’s returns have fueled meaningful philanthropic impact across cancer research, climate change, and beyond. Co-founder Jason Green established the Greenbridge Family Foundation to support initiatives addressing mass incarceration, educational opportunities for disadvantaged youth, and climate change mitigation.
Looking ahead: Pioneering the AI-enabled future
As AI continues to reshape industries, Emergence Capital is well-positioned to foster innovation and enable the next generation of B2B category leaders. With a proven track record, deep expertise, and a bold vision for the future, Emergence VII will play a pivotal role in shaping how AI revolutionises enterprise operations and empowers businesses worldwide.
The enterprise AI market is projected to grow from $23.95 billion in 2024 to $155.21 billion by 2030, representing a compound annual growth rate of 37.6%. As this market expands, Emergence Capital’s $1 billion fund positions the firm to play a pivotal role in shaping how AI transforms enterprise operations.