Khosla Ventures seeks $3.5B in fresh capital

Khosla Ventures, a firm known for early investments in OpenAI, is raising $3.5 billion across three funds, the Wall Street Journal reported. That target is 17% larger than the firm’s previous 2023 fund haul of $3 billion.  

About half of the new capital will be allocated to its ninth core venture fund. The remaining money will be divided between a $1.1 billion growth fund for later-stage startups and a $650 million seed-stage focused fund. 

Khosla Ventures declined to comment on its new fundraise.

The firm, which was founded by Sun Microsystems co-founder Vinod Khosla in 2004, has five managing directors, including Keith Rabois, who rejoined the firm after spending five years as a general partner in Founders Fund. During his first stint in Khosla Ventures, Rabois was an early investor in DoorDash, Affirm, Stripe, and Faire.

Khosla Ventures’ initial $50 million check in OpenAI has bought it a 5% stake in the profit-arm of the company, which is reportedly raising a $40 billion funding round at a $340 billion valuation.

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