Khosla Ventures launches fourth blank-cheque firm, to raise $200 mn via US IPO
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Khosla Ventures launches fourth blank-cheque firm, to raise $200 mn via US IPO

By Reuters

  • 24 Feb 2021
Khosla Ventures launches fourth blank-cheque firm, to raise $200 mn via US IPO
Credit: VCCircle

A blank-cheque firm, backed by prominent venture capitalist Vinod Khosla's eponymous investment fund, is looking to raise $200 million through an initial public offering, a regulatory filing showed on Tuesday.

Khosla Ventures Acquisition Co IV, a special purpose acquisition company (SPAC), plans to raise the funds by listing on the Nasdaq Capital Market.

The SPAC is sponsored by an affiliate of Khosla Ventures, a venture capital firm founded in 2004 by Sun Microsystems co-founder Khosla.

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Khosla Ventures has invested in numerous high-profile companies such as DoorDash Inc, Opendoor Technologies Inc and Affirm Holdings Inc, all of which went public last year.

Earlier this month, Khosla Ventures launched three other blank-check firms that are aiming to raise as much as $1.2 billion collectively.

The launch of Khosla's fourth SPAC comes at a time when numerous big-name investors, including Bill Ackman, Reid Hoffman and Chamath Palihapitiya, are betting big on the current SPAC frenzy.

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SPACs are shell companies that raise money through an IPO to take a private company public. They serve as an alternative for companies looking to enter public markets as SPACs allow them to sidestep a traditional IPO and the hassles attached to it.

Goldman Sachs and Piper Sandler are the lead underwriters for Khosla's latest offering. 

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