Mayfield Fund, led by the storied investor Navin Chaddha, recently announced that it has raised nearly one billion dollars ($955 million) across two venture capital funds: $580 million Mayfield XVII, which will back seed and Series A companies, and $375 million Mayfield Select III, which will back Series B companies. This raising of capital isn’t as high as other venture capitalists might seek, as Chaddha does not want to follow their lead and be associated with high expectations – he believes that this could be a strategy for failure. Even though the amount wasn’t as high as some peers, five hundred and fifty companies across one hundred and twenty IPOs and two hundred and twenty-five acquisitions have been backed with Mayfield Fund. Notable investments include Poshmark, Mammoth Biosciences, Lyft and SolarCity, acquired by Tesla.
Chaddha intends to stay true to the company’s goal of investing in roughly thirty companies per fund, and sticking primarily to early-stage companies. No loss of partners occurred during this fundraiser, despite the current economic conditions, primarily due to the consistency of the company. The previous funds were raised in less than a month, with a ten percent allocation to new partners.
Mayfield Fund has already invested six times this year, four of those in AI companies. Chaddha plans to use this new capital to increase the number of investment opportunities. Although high valuations have kept the company from some opportunities, Chaddha stands by his decision not to get lost in being swept away by ‘fear of missing out’.
Navin Chaddha has been successfully running Mayfield Fund for the past fifteen years. In the past decade, he has been listed fifteen times on the Midas list. During initial meetings with founders, Chaddha has been known to inquire about their aspirations for their company after ten years – he is known to pass on companies whose founders aim to start their third venture. As an example of their focus on diversity, Mayfield Fund allocates a percent of their fees to sponsor underrepresented students in tech industries, as well as running a summer fellows program.
In conclusion, Mayfield Fund’s latest fundraising is an indication of their continued success and demonstrates Chaddha’s commitment to staying disciplined and avoiding hype – despite an influx of capital. They plan to use the capital to ramp up their investments and hit the ground running.
