Index Ventures closed a $2 billion fundraise, bringing the European venture capital firm's total assets under management to $3.5 billion as it positions for the next wave of AI-driven technology companies.

The London-based firm split the capital across two vehicles: an $852 million seed fund and a $784 million growth fund. The raise represents a significant increase from Index's previous $600 million fund closed in 2022.

Index has backed some of Europe's most prominent technology companies since its founding in 1996, including early investments in Skype, Dropbox, Figma, Discord, and Revolut. More recently, the firm has expanded its AI portfolio with stakes in companies like Mistral and other emerging AI startups.

AI investment thesis drives expansion

The fresh capital reflects Index's conviction that artificial intelligence will create "the next generation of global technology companies," according to the firm. Partners believe AI represents a generational shift comparable to the internet's early days.

Index plans to deploy the funds across both European and US markets, maintaining its transatlantic investment strategy. The firm typically writes checks ranging from $100,000 for seed investments to $50 million for growth-stage rounds.

The fundraise comes as European AI startups face increasing competition for talent and capital against well-funded US counterparts. Index's expanded war chest positions it to compete for deals across both markets, particularly as AI infrastructure and application companies scale globally.

Portfolio companies signal market momentum

Index's existing AI investments include Mistral AI, the French foundation model company that has raised multiple rounds since 2023. The firm has also backed various AI infrastructure and application companies across its portfolio.

The timing aligns with broader venture capital interest in AI, as firms rush to identify the next generation of category-defining companies. Index's dual-fund structure allows it to support companies from initial seed funding through growth-stage expansion.

Index expects to deploy the capital over the next three to four years, focusing on founders building "transformative AI applications and infrastructure" across enterprise software, developer tools, and consumer applications.