Lightspeed Selling OpenAI Stake to Fund It Will Also Run
Lightspeed wants approximately $600 million to move its OpenAI stake and four others into a continuation fund, adding Anthropic as well. It will act as the seller while managing the buyer, adopting a structure that imports private equity's most debated approach.
What's a Continuation Fund?
The mechanics behind a continuation fund may seem complex, but they're straightforward:
- A venture fund has a finite lifespan (usually around 10 years).
- At its end, it must sell its holdings and return funds to investors.
- A continuation fund bypasses this process by allowing the manager to move chosen investments into a new vehicle. Original investors can choose to receive their money or roll it into the new fund.
The Controverse: Lightspeed on Both Sides
What makes these deals contentious is that Lightspeed is selling the assets while also managing the buyer fund. This raises concerns about potential conflicts of interest, as the fund manager benefits from setting a price that's favorable to them.
Coller Capital emerges as the lead buyer in this scenario, known for its disciplined approach and acting as an arm's-length investor.
Anthropic: A Fresh Position, Not a Rollover
One key distinction here: Bloomberg reports that exposure to Anthropic is a new commitment, not an existing holding. This means investors who choose to roll over their existing stake aren't just keeping what they have; they're funding a fresh position at potentially higher valuation.
Anthropic's last round valued it at $965 billion, a steep entry point.
What Else is in the Box?
The other assets in the fund include:
- Verkada: AI-driven physical security systems, valued at $5.8 billion after a CapitalG investment in December.
- Rippling: Workforces platform, raised to $16.8 billion in May 2025.
- Glean: Enterprise AI search engine, valued at $7.2 billion in June 2025.
- Reflection AI: Rapidly growing AI startup, reportedly seeking $25 billion fresh funding as recently as March 2026 after raising $8 billion in October 2025. Lightspeed secured a significant compute deal with SpaceX for Reflection, worth $6.3 billion through 2029.
Why the Structure is Gaining Traction
The arithmetic behind continuation funds is compelling: AI valuations soar every few months. Protecting stakes from future dilution in later rounds can cost hundreds of millions. Older funds lack the capital to do so, leading investors to seek structured exits like this one.