VC Firms Tap LP Pools, Warehouse Loans for Speedy AI Cash

Venture firms including B Capital are raising capital outside their main funds — LP pools and warehouse loans — to invest quickly in fast-appreciating AI startups. B Capital needed the cash to reinvest in Reflection AI, whose valuation more than tripled in six months during a $2.5 billion round.

• Reflection AI raised $2.5 billion as its valuation more than tripled in six months
• B Capital's main fund is a $500 million vehicle raised in July
• Firms create LP pools with reduced fees and borrow against assets for speed