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Global venture capital giant Sequoia Capital has announced the launch of two new early-stage investment funds totaling $950 million, reaffirming its long-term commitment to innovation amid an increasingly competitive artificial intelligence (AI) landscape.
The new funding vehicles include a $750 million Series A fund and a $200 million seed-stage fund, both mirroring the sizes of Sequoia’s 2021 funds — a deliberate signal of stability and strategic continuity following a turbulent few years marked by market volatility, the collapse of FTX, and the firm’s structural overhaul.
“Markets go up and down, but our strategy remains consistent,” said Bogomil Balkansky, Partner at Sequoia’s Early-Stage Investment team. “We’re always looking for outlier founders with ideas to build generational businesses.”
The firm’s renewed emphasis on early-stage investing reflects a disciplined approach to identifying high-potential startups before valuations soar. With AI company valuations reaching record highs, Sequoia aims to engage founders earlier — when pricing remains grounded in innovation potential rather than market hype.
This focus represents a broader cultural and operational reset for Sequoia. After taking a $200 million loss from its FTX investment and spinning off its India and China divisions into independent entities — now known as Peak XV Partners and HongShan, respectively — the firm has streamlined operations to concentrate on the U.S. and European markets.
“Our ambition has always been to identify transformative founders as early as possible and actively support them throughout their journey,” Balkansky added.
Sequoia’s current investment portfolio demonstrates a clear shift toward AI infrastructure and developer tooling, prioritizing foundational technologies over consumer-facing applications. Recent early bets include:
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Xbow, a startup specializing in AI security testing;
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Traversal, focused on reliability engineering; and
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Reflection AI, an open-source alternative to DeepSeek — which reportedly caught the attention of Nvidia CEO Jensen Huang, leading to a $500 million investment from the chipmaker.
Other successful early investments — such as Clay, Harvey, n8n, Sierra, and Temporal — have significantly appreciated in value, reinforcing Sequoia’s conviction in early-stage backing.
Beyond funding, Sequoia continues to deliver hands-on support for founders, offering guidance in executive recruitment, customer acquisition, and strategic partnerships.
Despite its legacy portfolio — including Airbnb, Google, Nvidia, and Stripe — the firm is mindful that its reputation must be continually earned. In Sequoia’s recently renovated headquarters, a handwritten message serves as a daily reminder for its team:
“We are only as good as our next investment.”
That statement encapsulates Sequoia’s renewed ethos — one defined by humility, conviction, and a relentless pursuit of the next transformative idea. As the AI boom reshapes global innovation, Sequoia’s $950 million early-stage funds position it to continue shaping the next generation of breakthrough startups.
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