Sequoia Raises $7 Billion for Its Biggest-Ever Late-Stage Fund
April 17, 2026 - 7:07 am
The Silicon Valley institution has closed roughly $7 billion for its expansion strategy fund, nearly doubling its comparable 2022 vehicle. Alfred Lin and Pat Grady, who took over as co-stewards in November 2025, are making this raise their opening statement on the AI era.
Sequoia Capital Raises $7 Billion
Sequoia Capital has raised approximately $7 billion for a new fund, according to Bloomberg, marking the firm’s largest fundraise in this category and the first under a new leadership structure. This money will support Sequoia’s “expansion strategy,” its late-stage investing arm focused on the US and Europe, nearly doubling the comparable $3.4 billion fund raised in 2022.
AI's Impact on Late-Stage Venture Investing
The scale of this raise reflects the structural shift that AI has brought to late-stage venture investing. The largest AI companies, such as OpenAI and Anthropic, are raising at a pace and scale with no precedent in venture capital history, driven by the capital intensity of training frontier models and building the compute infrastructure to support them.
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Sequoia has backed both OpenAI and Anthropic: it was an early investor in OpenAI and joined an Anthropic round led by GIC and Coatue in January 2026, breaking from the VC convention against backing competitors in the same sector. Both companies are reportedly targeting public listings in 2026, which would represent a significant liquidity event for Sequoia.
Leadership Transition and Internal Turbulence
The new fund is the first capital raise under Sequoia’s new co-stewards Alfred Lin and Pat Grady, who succeeded Roelof Botha as joint managing partners in November 2025 after Botha was removed in a surprise vote. This transition occurred during a period of internal upheaval, including the resignation of COO Sumaiya Balbale in August 2025 over Sequoia’s handling of posts by senior partner Matt Maguire, which drew criticism from founders and led over 600 to sign an open letter calling for a zero-tolerance policy on hate speech.
Lin and Grady’s “stewards” title reflects the model established by Sequoia’s founder Don Valentine.
Diversified AI Portfolio
Beyond the foundational AI companies, Sequoia has invested in various AI-adjacent startups. These include Physical Intelligence, the San Francisco robotics company that raised $400 million in late 2024, and Factory, which develops AI agents for enterprise engineering workflows.
Sequoia’s US and European operations are now separate from Peak XV Partners (India and Southeast Asia) and HongShan (formerly affiliated China-focused business), following a 2023 restructuring that completed in 2024. The $7 billion expansion strategy fund covers investments only in the US and Europe.
As of January 2025, Sequoia had approximately $56 billion in assets under management globally.