Sequoia Capital’s $1 Billion Raise Is Very Much About Going Global

by Blogburger on May 30, 2012

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The famed Sand Hill Road venture capital firm Sequoia Capital is indeed in the process of raising a total of some $ 1 billion for a series of several new venture funds, we’ve confirmed with sources close to the situation.

The new raise, on which Dan Primack at Fortune reported earlier today, is currently underway, and its structure as of now underlines the storied Silicon Valley-based venture capital firm’s increasing focus on having a global footprint. Legendary venture capitalist Michael Moritz may be stepping back from day-to-day operations at Sequoia, but one of the things he’s been most proud of over the years is making Sequoia a global firm — so this is just the latest evidence of his continuing impact there.

Here are the facts that we’re hearing: Sequoia is raising money for up to four separate venture capital funds, and each will be worth between $ 250 million to $ 400 million. The total amount being raised across all the funds is in the $ 1 billion range at the moment. It’s unclear when this fund raise will close, but word is that the appetite from LPs (the entities that invest in VC funds) is strong.

Right now, my understanding is the focus of each these could be: A general venture fund mostly focused on United States companies, a China-focused venture fund, and a China-focused growth fund. Sequoia also is continuing its interests in both India and Israel, and is understood to be opening an office in Brazil, so its fourth fund could well be focused on venture funding in one or all of those areas, or the general international space. Earlier this year Sequoia closed on money for a general growth fund focused mostly on US companies, so that realm is not part of the current raise.

It’s very important to note that all of this is still forming as of now, and none of this has been confirmed officially by Sequoia itself or through things such as regulatory filings. When reached today, a Sequoia spokesperson declined to comment on any of these matters.

In all, though, this is just further evidence of Sequoia’s continuing aim of building out a truly international venture capital powerhouse. Long a big name here in Silicon Valley, Sequoia is clearly intent on expanding its clout to a worldwide audience of companies — in the tech space and beyond. While angel and seed investors have become increasingly important in today’s startup ecosystem, traditional VCs like Sequoia are intent on proving the worth of larger and more involved investments.

TechCrunch TV had the opportunity to speak with two Sequoia partners last week backstage at the Disrupt conference in New York City. Watch the videos embedded below to get insight from both Greg McAdoo and Roelof Botha on the state of venture capital, how it is impacted by seed investing, the larger international perspective, expanding beyond tech into retail and consumer, and much more:



Image of Sequoia trees courtesy of Flickr user henryalien.




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