Proprietary models versus open source

Anthropic leaped to a $47 billion revenue run rate by May, compared to $9 billion in 2025. It’s the kind of growth that Menlo Ventures' Matt Murphy says he's never seen in 25 years of investing, not in the internet wave, not in mobile, not in the first cloud boom. Menlo led Anthropic's $500M Series D, and Murphy has had a front-row seat as the company went from a pre-revenue, pre-launch bet to one of the most valuable startups out there. 

On this episode of TechCrunch's Equity podcast, Julie Bort talks with Murphy about backing Anthropic before anyone else would, why a great model was never the point, and what's driving the fastest-growing startups he's ever seen. 

Listen to the full episode to hear more about: 

• Why Menlo bet on Anthropic at a $4 billion pre-revenue valuation when the deal didn't fit cleanly into any of the firm's funds, and why Google and Amazon signing on as investors was an early “green shoot.” 

• Why Murphy says the model was never the real moat, and how Claude Code, MCP, and Claude Skills turned Anthropic from a strong model into a full platform. 

• Murphy's take on the backlash to Anthropic's Mythos rollout, and why he pushes back on the idea that it was more marketing than safety. 

• Why companies like Lovable and Legora are growing faster than any startups Murphy has seen in 25 years, and what that speed means for founders trying to compete. 

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. 

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