Khosla Ventures Targets $3.5B in New Funding

Khosla Ventures Pursues $3.5 Billion Fundraise

Khosla Ventures, recognized for its early backing of OpenAI, is currently in the process of securing $3.5 billion through a series of three funds, as reported by The Wall Street Journal.

This fundraising goal represents a 17% increase compared to the $3 billion the firm collected during its previous funding round in 2023.

Fund Allocation Strategy

Approximately 50% of the newly targeted capital will be directed towards its ninth primary venture fund.

The balance of the funds will be distributed between two additional vehicles: a $1.1 billion growth fund designed for investments in more established startups, and a $650 million seed-stage fund focused on early-stage ventures.

Representatives from Khosla Ventures have not issued a statement regarding this current fundraising effort.

Firm Background and Key Personnel

Founded in 2004 by Vinod Khosla, a co-founder of Sun Microsystems, Khosla Ventures currently operates with a team of five managing directors.

Among these directors is Keith Rabois, who recently returned to the firm after a five-year tenure as a general partner at Founders Fund.

During his initial period with Khosla Ventures, Rabois played a key role in early investments in companies such as DoorDash, Affirm, Stripe, and Faire.

OpenAI Investment Yields Significant Returns

An initial investment of $50 million made by Khosla Ventures in OpenAI has resulted in a 5% ownership stake in the company’s for-profit division.

This division is currently seeking $40 billion in funding, which would value the company at $340 billion.