U.S. firm Sequoia Capital aims to raise $2.25 billion over funding winter: report

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US investment firm Sequoia Capital reportedly raised $2.25 billion worth of new funding from potential venture capitalists during the funding winter.

The company is working on a new $1.5 billion U.S. growth fund focused on more mature companies, reports The Information.

The investment firm is also planning “a $750 million fund focused on early-stage transactions” and aims to close the new funds this month, according to the report, citing sources.

These funds are called “sub-funds”, launched after the company overhauled the structure of its US and European businesses.

The new funds come as Sequoia Capital recently told founders it expects a longer economic recovery.

“With the rising cost of capital (both debt and equity), the market is signaling a strong preference for companies that can generate cash today,” according to the venture capital firm.

Last month, Sequoia India and Southeast Asia raised $2.85 billion across a fundraising package, including a $2 billion seed, venture and growth fund for India and a $850 million fund for Southeast Asia, to help founders build companies from idea to IPO and beyond. .

“This fundraising, which comes at a time when markets are starting to cool off after a very long bull run, demonstrates our deep commitment to the region and the confidence our sponsors have in the long-term growth story. India and Southeast Asia,” the company said in a statement.

Last year, India became the third largest startup ecosystem in the world, after the United States and China. India currently has over 100 unicorns.

In 2021, Indian startups raised $42 billion across 1,583 deals, resulting in 42 unicorns.

Southeast Asia, meanwhile, is on track to become a $1 trillion digital economy by 2030.

–IANS

na/shb/

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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