Why Did Matt Murphy Back Anthropic Before Revenue?

Matt Murphy backed Anthropic before it had revenue because the partnership had decided it had to be in the category. Anthropic was at least the second-best company, with the best technical team.

He participated in the Series C and then led the Series D. Anthropic was pre-revenue and pre-launch, at a four billion, four-plus-billion-dollar valuation. Back in 22 and 23, an exit at a four billion valuation was a spectacular outcome in the history of venture, and that price was the entry point. A venture fund had to work out a commitment of that size. A growth fund had to work out a company still pre-revenue and pre-launch, so the round was caught in the middle. The team had created ChatGPT, the models were benchmarking really well, and the market was massive. They bent the rules a little, treated the fit as imperfect for either fund, and joined with a goal to lead the next round.

As soon as the investment was made, the relationship with Anthropic changed. The work covered recruiting, talking to customers, and strategic issues that come up early in a company, and it worked out fabulously.