Sequoia Capital marked up its 2020 U.S. Venture XVII fund by 24.6% in June, despite having no exits yet. This contrasts with the expected poor performance of 2020 vintage funds due to inflated valuations from that period.
The increase is likely attributed to high valuations in AI, a sector where Sequoia has invested heavily, including in companies like OpenAI. This AI-driven boost provides a sense of recovery for the venture capital market, even though other sectors haven't seen similar gains.
Sequoia's Fund XVII, which closed in 2022, raised over $800 million. The fund's performance suggests that AI investments are significantly influencing venture capital valuations. For more on AI's impact, see articles like OpenAI Faces Lawsuit and Should Siri and Spotlight Merge?. Also, consider the potential of AI in new devices, such as the Redmi Note 13 5G.