Global investment firm B Capital has closed its third early-stage fund at $500 million, as it looks to back startups developing AI and other emerging technologies.

The firm said Ascent Fund III was oversubscribed and closed at its hard cap, nearly doubling the size of its previous early-stage fund, which raised $254 million in July 2022.

The new fund will invest mainly in seed, Series A and Series B rounds in companies across North America and Asia. It will focus on healthcare, enterprise, energy and frontier technologies.

B Capital said AI is creating new opportunities for founders building technologies that could support the next generation of global industries.

“AI is creating extraordinary opportunities across every industry. We believe the Fund is well positioned to capture this moment through our deep sector expertise, strong investor relationships and global reach. Central to our approach is an investment philosophy grounded in the fundamentals: backing outstanding entrepreneurs early and being a true partner over the long term,” said Howard Morgan, Chair and General Partner at B Capital.

Ascent Fund III has already invested in more than 20 companies across AI infrastructure, robotics, healthcare and frontier technologies.

Eduardo Saverin, Co-Founder and Co-CEO of B Capital said “We have entered a technology cycle that is reshaping industries and business models worldwide. The most meaningful opportunities will not come from technology alone, but from entrepreneurs applying AI to transform industries such as healthcare, enterprise, energy and the next frontier. With support from our own proprietary AI platform, this Fund will help founders turn bold, breakthrough ideas into enduring businesses with global impact.” 

“We're grateful for our limited partners’ continued confidence in B Capital as we closed Ascent Fund III at our $500 million hard cap.Their backing reflects a shared conviction that the next generation of market-leading companies will emerge as AI reshapes the world's largest industries. This Fund advances our multi-stage platform, partnering with exceptional founders early and supporting them with capital and operational expertise at every phase of growth,” said Raj Ganguly, Co-Founder and Co-CEO of B Capital.

Its early investments include Apptronik, Havoc AI and Star Catcher, which have since raised further financing to expand manufacturing, accelerate commercialisation and scale their technologies.

B Capital is a multi-stage investment firm with more than $12 billion in assets under management. It invests from seed stage to late-stage growth, mainly across technology, healthcare and energy.

The firm was founded in 2015 and works across nine locations in the US and Asia. It also has a strategic partnership with Boston Consulting Group.

B Capital has been active in India since 2016, when it began investing in companies including Icertis and BlackBuck. Its India portfolio also includes Meesho and Dailyhunt.

In a March interview with The Economic Times, Morgan said B Capital had historically focused more on India-for-global companies, but was open to more India-for-India opportunities because of the size of the domestic consumer market.

Morgan also said the AI investment boom was likely to face a correction, but that the strongest companies would emerge stronger after any shakeout.

He warned that high valuations could encourage investors to rely on a “buy high, sell higher” approach, which he said only works while a market bubble lasts.

The close of Ascent Fund III gives B Capital more capital to back young companies early and support them through later growth rounds.