Report: Sequoia Looking To Raise $7 Billion In New Funds

By Amit Chowdhry ● March 20, 2020
  • Sequoia Capital is reportedly planning to raise around $7 billion for a set of venture funds, according to sources with Bloomberg

Sequoia Capital is reportedly planning to raise around $7 billion for a set of venture funds, according to sources with Bloomberg. This investment vehicle is the latest in a series that is focused on China, India, and the U.S.

The raising of the funds comes at a time while investors are cautious about the economy due to the global recession triggered by the coronavirus pandemic and oil-price war. When Sequoia raises funding, it is typically oversubscribed.

Earlier this month, Sequoia published a memo that the coronavirus is considered a “black swan” event. A “black swan” event is a time of disruption that causes a negative financial impact.

“We sent that memo because we wanted to signal to our founders they should take this seriously,” said Sequoia partner Alfred Lin via Bloomberg Television. “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.”

However, a number of the most successful startups were funded during the time of the Great Recession over a decade ago. For example, Sequoia invested in startups like Airbnb and Dropbox back then.