Venture capital firm Sequoia Capital has raised the first $6 billion of its new $8 billion global fund, said a person familiar with the matter. The news, first reported by the Financial Times, is the latest sign of an arms race among venture capital investors raising bigger funds as they respond to SoftBank’s $100 billion Vision Fund.
With so much more money chasing deals and companies staying private longer, many investors expect that fundraising rounds and valuations for large private tech firms will continue to balloon. Sequoia’s previous global growth funds invested most of their capital in existing portfolio companies, the person said, so it seems likely that some of the new fund will again go toward portfolio companies staying private. A majority of the $6 billion was raised from new investors, while the next $2 billion for the fund is expected to come from existing investors including nonprofits and foundations.