Sequoia Capital aims to raise $2.25 billion in the midst of funding winter

• ByStartupStory     |    July 4, 2022

The US-based investment firm Sequoia Capital is soliciting $2.25 billion in fresh capital from potential VCs. According to The Information, the company is developing a new $1.5 billion US growth fund that will target more established businesses. The company intends to close the new funds this month and is also proposing “a $750 million fund targeted on earlier-stage businesses.”

These funds which the company is referring to as “sub-funds” were created following a reorganisation of the organization’s US and European business. The additional funds were announced at the same time Sequoia Capital recently informed founders that it anticipated a prolonged economic recovery. The market is indicating a significant preference for businesses that can generate cash now due to the growing cost of financing (debt and equity).

In order to assist founders in taking their businesses from conception to initial public offering (IPO) and beyond, Sequoia India and Southeast Asia raised $2.85 billion last month across a number of funds, including a $2 billion early-stage, venture, and growth fund for India and an $850 million Southeast Asian fund.

Our substantial commitment to the area and the confidence our Limited Partners have in the long-term growth narrative of India and Southeast Asia are both demonstrated by this fundraising, which comes at a time when markets are beginning to cool off after a very long bull run.

After China and the US, India has the third-largest startup ecosystem in the world as of last year. There are presently more than 100 unicorns in India. 42 unicorns were created in 2021 as a consequence of Indian businesses raising $42 billion through 1,583 agreements. By 2030, Southeast Asia’s digital economy is expected to be worth $1 trillion.

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