The venture capital space has produced lacklustre average returns for the past decade, but Menlo Park-based Khosla Ventures is hoping to change all this with its freshly raised $1 billion investment pot.
Khosla closed two funds in recent weeks. Established by Sun Microsystems founder Vinod Khosla, the firm collected $250 million for its Khosla Ventures Seed fund for investments in the earliest stage of projects. The firm also secured $750 million for Khosla Ventures III, which is targeting early and mid-stage investments.
The two funds were backed by some big-name pensions in the US, including the California Public Employees’ Retirement System, which committed $200 million to anchor Khosla’s funds.
VENTURE RETURNS: LONG TERM GOOD, SHORT TERM BAD
|US venture capital performance has notably declined in recent years|
|Pooled Mean Net|
|Period||to Limited Partners (%)*|