SpaceX backer 137 Ventures

137 Ventures raised $700 million across two growth-stage funds to solve a critical gap in venture capital: the shortage of patient capital for capital-intensive, deep-tech companies. Hardware and infrastructure startups—particularly those in aerospace, defense, and advanced manufacturing—faced acute funding challenges that traditional venture firms couldn't address. These founders needed $50 million to $500 million rounds to scale manufacturing and achieve commercialization, yet most VCs lacked the conviction or dry powder for such bets. The problem was measurable: SpaceX, Anduril, and Hadrian each required massive capital infusions to move from prototype to production. Alternatives like corporate venture arms and private equity existed, but they often demanded near-term profitability or controlling stakes. 137 Ventures validated its thesis early through its SpaceX backing—the company's trajectory from near-bankruptcy to $180 billion valuation proved that patient capital in hard tech could generate extraordinary returns. This success signal attracted institutional LPs willing to commit to longer investment horizons and higher risk tolerances.

137 Ventures raised $700 million across two growth-stage funds by demonstrating that founders and limited partners genuinely wanted access to capital for ambitious deep-tech companies. The firm's validation came through concrete behavioral signals: their existing portfolio companies—SpaceX, Anduril, and Hadrian—were actively raising subsequent rounds at accelerating valuations, signaling investor confidence beyond initial backing. Early traction manifested through LP commitments from tier-one institutions willing to deploy capital at scale into hardware and aerospace ventures, a traditionally capital-intensive sector. The proof of demand extended beyond stated interest when portfolio companies achieved measurable milestones: SpaceX's successful launches, Anduril's defense contracts, and Hadrian's manufacturing breakthroughs. These outcomes attracted follow-on investors and demonstrated that 137 Ventures' thesis—that deep-tech startups needed specialized growth capital—resonated with market reality. The $700 million raise itself became evidence: LPs voted with capital, validating that the firm had identified a genuine gap in venture funding for companies requiring patient, substantial investment.