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Venture

Khosla Ventures Wants To Raise $3 Billion, Its Largest Raise To Date 

Illustration of money growing from seed.

, the first investor in among other notable investment distinctions, said in regulatory filings it plans to raise $3 billion across three new funds, Axios .

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Of that raise, $1 billion will go to its second opportunities fund and $400 million will go toward its seed fund. Meanwhile, $1.5 billion has been allocated to its flagship fund. If successful, this will be Khosla Ventures’ largest fundraise to date, per Crunchbase data. The amount will surpass its seventh fund in 2020, which garnered $1.4 billion.

Khosla Ventures is one of the largest venture capital firms in Menlo Park, California, with portfolio companies spanning biotech, software and consumer goods. That includes , e-commerce apparel startup , and grocery delivery service . Per Crunchbase data, its most recent investment was in December when it participated in IT-focused ’s $75 million raise.

Venture firms struggled to raise capital last year. Funding in the U.S. amounted to $161 billion in 2022, largely thanks to a strong first quarter which led with over $72 billion. By the end of the fourth quarter, venture firms barely managed to raise around $16 billion, according to Crunchbase data.

It will be interesting to see when Khosla Ventures deploys the funds, and which lucky startups will benefit. Venture firms pulled back on funding in 2022 and, despite having around $1.3 trillion in dry powder globally, we’re not likely to see a ton of investment activity in the first half of 2023.

Illustration: Dom Guzman

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