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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 Ƶ 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 Ƶ 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 Ƶ 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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