Khosla Ventures Looks to Raise $3B for Trio of Funds
Early-stage investment firm Khosla Ventures, founded by billionaire Vinod Khosla in 2004, plans to raise $3bn across three new funds, according to regulatory filings.
The Menlo Park, CA-based venture capital firm, is targeting $1.5bn for its eighth venture fund, its largest raise to date, $1bn for a second opportunity fund and another $400 million towards a new seed fund.
Khosla’s fundraise comes amid a retrenchment in investment in VC funds. US VC firms raised a record $162.6bn in 2022, but the pace of fundraising slowed in the second half of the year, according to PitchBook. Limited partners (LPs) have warned fund managers that raising capital will be much harder in 2023.
Firms like Khosla, who have proven their ability to pick winners, should have an advantage as the slowdown isn’t hitting everyone the same. The money has been concentrated in fewer, larger funds, such as Sequoia Capital’s $2.25bn and Lightspeed Venture Partners’ $7.1bn hauls from July.
LPs are likely to continue backing more established fund managers rather than riskier ones with an unproven track record.
Pictured: Vinod Khosla