Two SEC filings, posted late this afternoon, signal intent by Khosla Ventures to raise another $1.4 billion across two new venture capital investment funds. This will bring the amount of publicly-known capital under management to $5.8 billion across its main venture and seed funds. (This $5.8 billion figure does not include assets from the first two venture funds or any sidecar funds for which public filings are not available.)
The largest new fund, the firm’s sixth primary venture fund, is inventively called “Khosla Ventures VI, L.P.” and will raise up to $1 billion. The second fund seems to be focused on seed-stage deals and will be the firm’s fourth such fund. The new seed vehicle is called “Khosla Ventures Seed D, L.P.” and will manage as much as $400 million.
Lately, much attention has been paid to venture capital firms raising ever-larger funds. But just today, CNBC broke the news that Sequoia Capital will raise a new $12 billion growth-stage venture fund to counterbalance the likes of SoftBank. As Crunchbase News has covered previously, SoftBank’s $100 billion Vision Fund is in a league all its own.
And Khosla’s $1 billion for a new venture fund and $400 million for a new seed fund may sound like a lot of money; however, these funds aren’t materially larger than what the firm has raised in the past. In fact, they’re right in line with historic averages.
Using a combination of Crunchbase fund data and SEC filings for verification, we found the historic fund sizes for Khosla Ventures funds.
The chart below shows the fund size for Khosla’s main venture funds, which excludes the first two funds due to lack of data.
The $1 billion sixth fund revealed today, again, is right in line with historic averages. With an additional $100 million under management, the fourth fund is the outlier here.
There is slightly more variation with the size of its seed funds, as we can see below.
The “Seed D” fund listed in today’s regulatory filings is the exact same size as Khosla’s prior seed-focused fund, which was announced in late 2014. And considering that $400 million is situated between the AUM figures of Khosla’s first two seed funds, it looks like the firm has dialed in a fund size to fit its investing strategy.
By the standards of most investment firms, these would be considered quite large funds, but for Khosla Ventures, this is just another walk down Sand Hill Road.
Illustration: Li-Anne Dias