Sequoia, a top U.S. venture capital firm, is targeting a new fund between $5 billion and $6 billion, a source familiar with the matter told CNBC on Thursday.
The talks are in the early stages and Sequoia hasn’t started raising yet, the source said, adding that the fund size could be higher or lower than the target.
It would be a globally-focused fund to invest in technology companies. The fund would also be the third global growth fund for the company. The previous two were $700 million in 2012, and $2 billion in 2015. The third fund would likely be higher than this.
A Sequoia spokesperson declined to comment.
Sequoia is a well-respected venture firm that has been around since the 1970s. It had previously invested in companies including Google and Apple, and more recently in Airbnb and Stripe.
The news comes as private tech companies are staying private for longer and valuations are rising. Instead of choosing the public markets, firms like Uber are opting to take later stage funding.
SoftBank, which recently took a stake in Uber, has come to the market with a $100 billion fund, and getting into many later-stage businesses.
The source said that raising a new fund is not a response to SoftBank.
