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SignalFire raises over $1B as LPs embrace data-driven investing
Venture capital firm SignalFire has secured over $1 billion in fresh capital, marking its largest funding haul to date. The company’s data-driven approach has garnered significant attention from institutional investors, with the majority of its new limited partners (LPs) committing to the fund for the first time.
In an interview with TechCrunch, Chris Farmer, SignalFire’s founder and partner, emphasized that his firm’s unique strategy, which incorporates AI into every aspect of investing, was a major draw for these LPs. Unlike other firms that focus solely on networking, SignalFire’s data-driven approach allows it to identify trends before its competitors.
The company has invested in several successful startups, including Grammarly, Grow Therapy, and EvenUp, an AI software for personal injury lawyers worth over $1 billion. While many venture capital firms are adopting AI-powered strategies, Farmer believes that his firm stands out due to its commitment to investing in companies with deeply defensible businesses or technologies.
SignalFire’s new fund will continue to focus on sector-specific AI startups, including those in the areas of healthcare and pharma, consumer, infrastructure, developer tools, and cybersecurity. The company has deliberately avoided backing firms that are building the foundation layer for AI models, citing concerns over their defensibility.
Instead, SignalFire is actively seeking out companies with unique value propositions that cannot be easily replicated by competitors.
Source: https://techcrunch.com/2025/04/07/signalfire-raises-over-1b-as-lps-embrace-data-driven-investing/
