Sequoia Capital seeks to raise about $7 billion for a set of venture funds in a series focused on China, India and the U.S. The effort marks a major fundraising nudge while many investors are taking a cautious stance as COVID-19 pandemic has sent stock markets tumbling and has economists warning of a global recession.
Sequoia, a firm with a nearly 50-year track record whose funds are typically oversubscribed, is better suited than many rivals to raise capital in this environment.
The firm recently made headlines with its memo that coronavirus represents a “black swan” event, meaning an unexpected disruption with widespread financial impact.
Commenting on the memo, Sequoia partner Alfred Lin in an interview with Bloomberg Television said, “We sent that memo because we wanted to signal to our founders they should take this seriously. We need to focus on survival. For many of our founders, that means focusing on their cash flow and understanding how much cash they have to get to the other side. I think a lot of funds have plenty of cash to invest. We are open for business. If you fundamentally have a good business, I believe you will get funded.”
Two years ago, Sequoia raised more than $6 billion for a separate global growth fund.