Jan 6, 2022 - Economy

Exclusive: Khosla Ventures raises its first opportunities fund

Dan Primack

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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Exclusive: Khosla Ventures raises its first opportunities fund

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