Venture capital may be slowing down, but that appears to be giving VCs some time to raise their own funds.
Sequoia Capital is the latest VC to do so, raising two new U.S.-focused funds with valuations as high as $2.25 billion, The Information reported earlier this week.
Menlo Park-based Sequoia is seeking $1.5 billion for a U.S. growth fund focused on late-stage companies and a $750 million fund targeting early-stage startups, the outlet reported. The funds are expected to close in July.
The news comes after the venture capital giant told founders it expected a longer economic recovery. Sequoia told the media: "As the cost of capital (including debt and equity) rises, the market is sending signals that there is a strong preference for companies that can generate cash today."
In October last year, the media reported that Sequoia Capital was in the strategy A major shift in growth as it looks to boost its returns amid increased competition in the startup financing market. The well-known venture capital firm announced that it is breaking with tradition and abandoning traditional fund structures and artificial time limits for LP capital returns. The company said its future investments will now be made through a "single, permanent structure" called the Sequoia Fund.
The venture capital firm isn't the only one raising new funds lately. For example, earlier this week, Drive Capital said it raised an additional $1 billion to invest in startups in the central region, bringing its assets under management to $2.2 billion. Conversion Capital announced a new $122 million fund earlier this week to back early-stage financial technology and infrastructure startups. Meanwhile, Simple Food Ventures has launched a $15 million fund for healthier grocery store staples and made its first investment. In the past few months, we've also seen Anterra Capital announce a $260 million raise for its second global food and agritech fund, and Vine Ventures closing a $140 million investment fund, , with half of Funding for Israeli startups.
