Bessemer Venture Partners (BVP) is an American venture capital and private equity firm headquartered in San Francisco, with additional offices in India, Israel, Hong Kong, and the United Kingdom. As of 2024, the firm has over $20 billion in assets under management and was ranked by Venture Capital Journal as the 3rd largest venture capital firm based on total fundraising over the most recent five-year period. BVP is known for early-stage investments in technology companies, including notable portfolio companies such as Twilio and SendGrid, and has increasingly focused on Artificial intelligence ventures.
The firm traces its origins to 1911, when Henry Phipps Jr., a co-founder of Carnegie Steel, established Bessemer Trust in New York to manage his family's assets. That same year, he spun out Bessemer Securities as a separate entity with $20 million in assets under management, which invested in venture capital deals, publicly traded securities, and real estate.
History
In 1974, Bessemer Trust began accepting outside investors, while Bessemer Securities continued managing only the Phipps family's money, allowing it to take on riskier investments in private tech and medical companies. The following year, in 1975, Bessemer Securities opened an office in Silicon Valley to be closer to emerging technology startups.
The 1970s proved challenging for Bessemer Securities, as the firm suffered significant losses due to real estate investments. Despite this setback, by 1986 the firm had rebounded to $950 million in assets under management and expanded its investment team by hiring venture capital specialists. Eventually, the venture capital investment operation was spun out separately as Bessemer Venture Partners, though Bessemer Securities remains the parent company, providing funding and support.
In 2000, BVP began investing outside the United States, expanding into India, Israel, Latin America, and Europe. It also briefly maintained an office in China before closing it in 2006. A major milestone came in 2007, when BVP closed Bessemer Venture Partners VII, its first fund that took capital from outside investors; prior to that, capital came only from the Phipps Family or Bessemer Securities.
Modern Expansion and AI Focus
In 2021, BVP established a dedicated private equity teamasia, and in September 2022 this team, now called BVP Forge, closed its first buyout fund at $780 million. That same month, BVP also announced its 12th early-stage fund, raising $3.85 billion. These moves signaled a broader strategy to cover both venture and growth-stage investments.
BVP has become an active investor in Artificial intelligence and Machine learning startups, recognizing the sector's potential to transform industries from healthcare to cloud computing. The firm's portfolio includes AI-related companies such as Cerebras and CoreWeave, which focus on specialized hardware and cloud infrastructure for AI workloads. BVP has also invested in OpenAI competitor Anthropic, reflecting its interest in Large language model development and Generative AI applications.
Investment Philosophy and Approach
BVP is known for its long-term partnership approach, often investing early in companies that later become public. The firm publishes its "anti-portfolio," a candid list of companies it passed on, including Apple, Intel, and Nokia Bell Labs' parent, as a way to share lessons from missed opportunities. This transparency is part of BVP's cultural identity, which emphasizes learning from both successes and failures.
The firm's investment focus spans software, healthcare, financial technology, and infrastructure, with a growing emphasis on AI-native companies. BVP's team includes specialists in Deep learning and Neural network technologies, helping it evaluate technical risks in early-stage deals.
Global Presence
BVP's international offices in India, Israel, Hong Kong, and the United Kingdom allow it to source deals across major innovation hubs. The firm's India office, established in the early 2000s, has backed local technology startups, while its Israel office focuses on cybersecurity and enterprise software. The Hong Kong office serves as a base for Asian investments, though the firm closed its China office in 2006.
Notable Portfolio and Impact
Beyond Twilio and SendGrid, BVP has invested in companies across cloud-computing and Large language model infrastructure. Its success rate has made it a benchmark for venture performance, with multiple funds ranking in the top quartile of industry returns. The firm's willingness to hold positions through public listings has generated substantial returns for its investors.
Governance and Leadership
BVP operates with a partnership structure, with general partners leading investment decisions across sectors. The firm's leadership has included experienced venture capitalists who have championed early bets on developer tools, cloud services, and now AI infrastructure. BVP also maintains an active network of portfolio company founders, offering operational support and market access.
See Also
BVP's portfolio demonstrates its conviction in AI's economic potential, including investments in Cerebras for AI chips and Inflection AI for conversational AI. The firm's dual focus on proven software models and frontier Machine learning companies positions it as a bridge between traditional SaaS and the emerging generative AI wave.