U.S. VC companies had no trouble raising money for new funds in 2022, despite a slowdown in deploying VC.
This pattern may be tested once again, as Khosla Ventures is reportedly seeking to raise $3 billion for three new funds.
Vinod Khosla’s company is seeking $1.5 billion for its next Fund VIII, $1 million for its second opportunity fund, and $400 million for its upcoming seed fund.
If the last year taught us anything, it’s that Khosla Ventures’ pursuit of such a massive sum of money is not unprecedented. After bringing in $1.4 billion for Fund VII, the company raised over $550 million for its inaugural Opportunity Fund.
Speculation in the venture capital industry suggests that many companies may be unable to successfully raise their subsequent fund. Khosla, in contrast to many other VC companies, generates respectable profits. It has backed up successful startups including Affirm, Square, and DoorDash. Furthermore, it is a part owner of both Instacart and OpenAI.
This occurs at a time when venture capital companies are successfully raising capital for new funds, as was previously indicated. The third quarter of 2022 was the point at which we revealed that U.S. VC firms had raised $150.9 million across 593 funds.
Even though transaction activity slowed, companies raised a record $162.6 billion across 767 funds in2018, indicating that enterprises would maintain this trend of reducing capital deployment in 2023.
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