In a world where venture capital firms are constantly competing to raise increasingly larger funds, Greylock Ventures has chosen a different path. The 61-year-old firm, one of the oldest and most prestigious venture firms in Silicon Valley, has announced that it has raised a $1.5 billion 18th fund. This number is 50% higher than its previous $1 billion vehicle from 2023 and roughly matches the capital the firm raised across seed and flagship funds during the pandemic.
However, according to Greylock partner Saam Motamedi, the firm could have easily raised a “multiple” of that figure. Motamedi explained that Greylock decided to cap its new fund at $1.5 billion, despite the potential to raise more, because the partnership values restraint over aggressive growth. “Our mission is to be the most important partner to the most important entrepreneurs,” Motamedi said. “We pride ourselves on introducing our portfolio companies to top engineers and potential customers, as we did for Baseten, an AI infrastructure startup that is now valued at $13 billion, after first investing in its Series A in 2022.
Greylock’s approach to venture capital is centered around the idea of incubating companies from the earliest stages and leading seed and Series A rounds. This is where the firm has built its reputation, with a strong track record of starting companies from scratch. Notably, security giant Palo Alto Networks, which launched inside Greylock’s offices 21 years ago, and the email security startup Abnormal, which Greylock incubated in 2018 and was last valued at $5.1 billion, are both testaments to the firm’s success in this area.
While Greylock sticks to its early-stage roots, the firm also backs high-potential, later-stage companies, even if it “missed them early on.” Motamedi explained that this approach allows Greylock to support companies at critical points in their growth, such as when they are scaling rapidly or looking to expand into new markets. The firm’s 17th fund included three such growth-stage bets: Anthropic, Revolut, and Wiz. The largest investment in the firm’s history was made into Anthropic when the AI company raised its Series F at a $183 billion valuation.
According to Motamedi, roughly 15% of the new fund will be deployed into later-stage startups. However, he maintains that Greylock remains fundamentally an early-stage investor. To support this claim, Motamedi pointed to the firm’s Monday meetings, where the agenda consists primarily of people’s names rather than company names. “We’re getting to know people even before they start a company,” Motamedi said. “It’s really a bet on the person. Often the company doesn’t even exist yet.”
Greylock’s approach to venture capital is centered around the idea of building relationships with entrepreneurs and supporting them from the earliest stages of their company’s development. By keeping the number of companies it backs small, the firm is able to offer its portfolio companies the level of support they need to succeed. As Motamedi said, “Our mission is to be the most important partner to the most important entrepreneurs. We want to help them build companies that change the world.”
By choosing to cap its new fund at $1.5 billion, Greylock has demonstrated its commitment to its mission and its values. The firm’s approach to venture capital is centered around building relationships with entrepreneurs and supporting them from the earliest stages of their company’s development. By keeping the number of companies it backs small, Greylock is able to offer its portfolio companies the level of support they need to succeed.
