Sequoia Capital has unveiled two new funds worth a combined $950 million for early-stage investing, moving ahead undeterred by the overheated artificial intelligence (AI) market.
With the investment, the firm is returning to its roots following years of challenges, including the collapse of FTX and a major structural overhaul.
The venture firm announced a $750 million fund for Series A startups and a $200 million fund dedicated to seed-stage ventures.
Same sizes as the ones launched in 2021, the current fund is an intentional nod to stability after what many investors have described as one of Sequoia’s most challenging periods.
“Markets go up and down, but our strategy remains consistent. We’re always looking for outlier founders with ideas to build generational businesses,” said Bogomil Balkansky, partner at Sequoia’s early-stage investment team.
The firm’s current goal of early-stage investing seeks to capture promising startups before valuations spiral. With AI startup prices increasing to high levels, Sequoia wants to get in early, when ownership stakes are more meaningful and pricing is still grounded in potential rather than later.
This disciplined focus is a cultural and operational reset for the firm. After losing over $200 million in its failed investment in cryptocurrency exchange FTX and spinning off its India and China arms, now Peak XV Partners and HongShan, Sequoia has bolstered its focus on the U.S. and European markets.
The firm’s internal restructuring aims to simplify decision-making and strengthen engagement with founders from the earliest stages of their journey.
“Our ambition has always been and continues to be to identify these founders as early as possible; to roll up our sleeves and be a very active participant in their company-building journey,” Balkansky added.
Sequoia’s recent portfolio choices show a strong tilt toward AI infrastructure and developer tools rather than purely consumer-facing products.
Among its notable early investments are Xbow, focused on AI security testing; Traversal, a reliability engineering firm; and Reflection AI, an open-source alternative to DeepSeek.
Sequoia’s introduction of Reflection AI to Nvidia’s Jensen Huang reportedly led to a $500 million investment from the chipmaker.
The firm’s earlier investments in Clay, Harvey, n8n, Sierra, and Temporal have also multiplied in value, further validating its early-entry strategy.
Beyond capital, Sequoia continues to provide hands-on support, helping with executive recruitment, customer connections, and strategic partnerships.
While the firm’s name remains synonymous with success stories like Airbnb, Google, Nvidia, and Stripe, Sequoia is acutely aware that reputation alone cannot sustain its legacy.
In its newly renovated headquarters, every investor has handwritten a reminder on the wall: “We are only as good as our next investment.”
This simple phrase encapsulates Sequoia’s renewed mindset, a blend of humility and conviction that even with AI exuberance, the firm’s value lies in its ability to spot the next transformative idea before anyone else. The new Sequoia Capital early-stage funds are just right on time.
