Venture capital investments may be slower, but it seems to give venture capitalists some time to get out there and raise their own money.
Sequoia Capital is the latest to raise two new US-focused funds worth up to $2.25 billion, The Information reported earlier this week.
The publication reported that Menlo Park-based Sequoia is considering $1.5 billion for a U.S. growth fund focused on early-stage companies and a $750 million fund targeting early-stage startups. These funds are expected to close in July.
This news comes just over a month after the venture capital giant told founders it expected a longer economic recovery. Colleagues reported that Sequoia told them, “With the rising cost of capital (both debt and equity), the market is signaling a strong preference for companies that can generate cash today.”
Last October, TechCrunch announced that Sequoia Capital had launched a major strategy shift as it sought to increase returns amid heightened competition in the startup funding market. The well-known venture capital firm has announced that it is breaking with tradition, abandoning the traditional fund structure and their artificial deadlines for the return of LP capital. The company’s future investments, he said, would now go through a “single, permanent structure” called The Sequoia Fund.
The venture capital firm is not alone in raising new funds lately. For example, earlier this week, Drive Capital said it raised an additional $1 billion to invest in startups in the middle of the country, bringing its assets under management to $2.2 billion. Conversion Capital earlier this week announced a new $122 million fund to support early-stage fintech and infrastructure startups. Meanwhile, Simple Food Ventures made the first close of its $15 million fund for healthier staples in grocery stores. In recent months, we’ve also seen Anterra Capital announce its second $260 million global food and agriculture technology fund and Vine Ventures close $140 million, half of which will go to Israeli startups.