Jan 6, 2022 - Economy & Business

Exclusive: Khosla Ventures raises its first opportunities fund

Vinod Khosla
Vinod Khosla. Photo: Steve Jennings/Getty Images for TechCrunch.

Khosla Ventures has raised $557 million for its first-ever opportunities fund, the venture firm tells Axios.

Why it matters: This is the latest in a trend of early-stage venture capital firms raising money to double down on winners as the mature, or at least to maintain their ownership positions.

  • Most of the new fund will go toward KV's existing portfolio, although the fund also can invest in new companies.
  • KV, which last year raised $1.4 billion for its latest flagship and seed funds, recently hired Bryan Gartner away from Sidewalk Infrastructure Partners to focus on growth deals.

What they're saying: "As we put our regular fundraising decks together, we took a good hard look at the numbers and realized that if we'd even just kept our pro rata it would have been a win/win for everybody," explains KV partner Samir Kaul. "Instead, we basically handed tremendous IRRs to other firms' growth funds."

  • Some of KV's bigger early-stage hits include Affirm, DoorDash, Instacart, Rocket Labs and Square.
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