Sequoia Capital aims to raise $2.25 bn amid funding winter

The firm is working on a new $1.5 billion US growth fund focused on more mature companies, reports The Information.
Representative Image
Representative Image

SAN FRANCISCO: US-based investment firm Sequoia Capital is reportedly raising new funds worth $2.25 billion from potential VCs in the funding winter.

The firm is working on a new $1.5 billion US growth fund focused on more mature companies, reports The Information.

The investment firm is also planning "a $750 million fund focused on earlier-stage deals," and aims to close the new funds this month, the report mentioned, citing sources.

These funds are being called "sub-funds," launched after the firm overhauled the structure for its US and European business.

The new funds come as Sequoia Capital recently told founders that it was expecting a longer economic recovery.

"With the cost of capital (both debt and equity) rising, the market is signalling a strong preference for companies who can generate cash today," according to the VC firm.

Last month, Sequoia India and Southeast Asia raised $2.85 billion across a set of funds, including a $2 billion early-stage, venture and growth fund for India and an $850 million Southeast Asian fund, to help founders build companies from idea to IPO and beyond.

"This fundraise, which comes at a time when markets are starting to cool after a very long bull run, signals our deep commitment to the region and the faith our Limited Partners have in the long-term growth story of India and Southeast Asia," the company had said in a statement.

Last year, India emerged as the third-largest startup ecosystem in the world, after the US and China. India currently has more than 100 unicorns.

In 2021, Indian startups raised $42 billion across 1,583 deals, resulting in 42 unicorns.

Southeast Asia, meanwhile, is on track to become a $1 trillion digital economy by 2030.

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android

Related Stories

No stories found.
DT next
www.dtnext.in