"Thrive Capital has taken a roughly $100 million stake in Shopify, according to Bloomberg, which cited people familiar with the matter. The investment is notable less for its size, $100 million is a rounding error in a firm that raised more than $10 billion for its latest fund, than for what it signals about where the most successful venture investors now see value. Thrive, best known for backing OpenAI, SpaceX, and Stripe when they were private, is buying a public company whose stock has fallen 40% this year."
"The firm told its stakeholders that the Shopify position is a bet on how artificial intelligence could drive gains in commerce. That framing connects the investment to a broader thesis Thrive has pursued across its portfolio: that AI will restructure the economics of every industry it touches, from defence to drug discovery to, now, the software that powers online retail."
"Thrive is part of a small but growing cohort of venture firms that have started investing in public equities alongside their traditional startup portfolios. The firm is registered as an investment adviser, a designation that allows it to use the same funds for public and private positions. So are Accel and Andreessen Horowitz, two of the other firms that have made similar moves."
"The precedent within Thrive's own portfolio is instructive. In March 2022, the firm bought a significant position in Carvana, the online car marketplace, a"
Thrive Capital has taken an approximately $100 million stake in Shopify, a public company whose shares have fallen about 40% year to date after guidance indicated slowing revenue growth. Thrive framed the investment as a bet that artificial intelligence can drive gains in commerce and reshape industry economics. The firm, known for early backing of OpenAI, SpaceX, and Stripe, raised a $10 billion fund in February. Thrive is part of a growing group of venture firms investing in public equities alongside private startups, enabled by its investment adviser registration. Other firms making similar moves include Accel and Andreessen Horowitz. Thrive previously made a contrarian Carvana trade that generated $522 million.
Read at TNW | Insider
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