When Chris Farmer launched SignalFire over a decade ago, he was pushing against the tide. The idea of using data and machine learning to spot promising startups was viewed as wishful thinking in an industry still dominated by gut instinct and personal networks.
“Everyone thought I was crazy,” Farmer recalled recently, speaking alongside CTO and co-founder Ilya Kirnos. But thirteen years later, that “crazy” idea just helped the firm secure over $1 billion in fresh capital—SignalFire’s largest raise to date.
The new funds bring the firm’s total assets under management to $3 billion. Marking a major milestone in its journey from experimental newcomer to established player in venture capital. While many VC firms are shrinking their fund sizes in today’s uncertain market. SignalFire’s growth signals growing confidence in its data-first approach.
At its core, SignalFire’s model is built around a powerful thesis: AI can do more than source deals—it can power the entire venture process. Unlike most VC firms that dabble in analytics, SignalFire has embedded AI into everything it does. From identifying breakout startups at the seed stage to helping founders with hiring and go-to-market strategy.
It’s this full-stack approach to AI investing that has helped SignalFire stand out. Farmer calls it the firm’s competitive edge, and it’s one that’s resonating with some of the world’s largest institutional investors.
Among the new backers is CalPERS, the largest pension fund in the U.S., which reportedly committed $100 million. Farmer says the support from pension funds, insurers, banks, and even a sovereign wealth fund in Asia shows that SignalFire has moved beyond the “proof-of-concept phase.”
“Most seed firms are small and short-lived. Large institutions usually can’t back them because they need scale and staying power,” he explained. “We give them exposure to early-stage innovation—without sacrificing longevity.”
SignalFire starts investing as early as the pre-seed stage but doesn’t stop there. Its multi-stage model enables it to keep backing its strongest portfolio companies as they grow. A strategy often dominated by traditional Series A and growth-stage firms. The difference? SignalFire is wielding significant capital even at the seed level, sometimes writing checks as large as $100 million.
This aggressive early-stage investing has already yielded notable bets. SignalFire was an early backer of Grammarly, now valued at $13 billion, and EvenUp, a legal AI startup reportedly worth over $1 billion. It also invested in Grow Therapy, which closed a major round last year led by Sequoia.
While many firms are chasing the foundation layer of AI—think large language models and infrastructure—SignalFire is intentionally steering clear. Farmer warns that model builders are constantly being leapfrogged by newer, faster entrants, making it hard to defend a long-term advantage.
Instead, the firm prefers startups with deep defensibility—businesses that solve specific pain points and are tough to replicate. “EvenUp doesn’t have a real competitor,” Farmer said. “That’s what we’re looking for.”
Going forward, the firm plans to continue its focus on sector-specific AI startups. Healthcare and pharma, cybersecurity, consumer apps, and developer tools are all on the radar. But regardless of the sector, the firm is sticking to its core playbook: use AI to identify promising startups early, then leverage its scale to support them long-term.
In a venture landscape where traditional intuition is being challenged by algorithmic precision, SignalFire’s AI investing model isn’t just surviving—it’s thriving.
