Sequoia Capital closed fundraising for the bulk of a new global investment vehicle, raising $6 billion and creating the largest U.S.-based venture capital fund.
The commitments came largely from new investors, according to people familiar with the matter. In coming months, Sequoia aims to close the round for the firm’s existing investors, bringing the fund’s total to $8 billion, one of the people said. The people asked not to be named discussing private information.
Sequoia Capital declined to comment.
Venture funds have ballooned in size recently as startups increasingly delay going public, leading investors to commit capital at later stages to support the company and maintain their equity stakes. Sequoia is an investor in Airbnb Inc., a decade-old startup valued at $31 billion, and payments company Stripe Inc., founded in 2010 and valued at more than $9 billion, according to PitchBook Data. Neither company has firm plans to IPO anytime soon.
Venture capital firms are also competing against sovereign wealth funds, mutual funds and hedge funds hunting for high-growth investments. SoftBank Group Corp.’s $100 billion Vision Fund has sunk billions into already well-capitalized startups, including Uber Technologies Inc. and announced Thursday a $2.25 billion investment in General Motor Co.’s autonomous-vehicle unit.
With more than four decades of experience, Sequoia made early investments in some of the world’s most successful technology companies, including Apple Inc. It’s also become a strong presence in China, backing companies like Alibaba Group Holdings Ltd., drone-giant DJI and ride-hailing company Didi Chuxing.