Sequoia is testing investor appetite for start-ups in south-east Asia

Sequoia Capital is looking to raise about $7 billion for its latest set of venture capital funds, testing investor appetite for technology start- ups in the US and south-east Asia as the coronavirus shakes capital markets. The Silicon Valley-based firm — known for its early investments in Google, PayPal, Meituan Dianping and ByteDance — is seeking commitments for multiple funds targeting companies in the US, China and India… Fundraising could close as soon as July. The planned fundraising comes despite the rout in capital markets over the past few weeks, prompted by the coronavirus pandemic. But the social distancing and self-quarantine imposed by governments to halt the virus’s spread has boosted some technology companies, particularly those in China, as homebound consumers download more videos and games. Private equity and venture capital companies have been better shielded from withdrawals than hedge funds, as they generally have long lock-up periods… The pace of venture capital fundraising has quickened in recent years, as sovereign wealth funds, endowments, pensions and other pools of capital seek high-yielding investments with interest rates near historic lows. 

Miles Kruppa and Henny Sender