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Sherpa Capital has raised $470 million and launched two new funds

The venture capital firm is one of many behind companies like Uber and Munchery.

Shervin Pishevar and Scott Stanford
Sherpa Capital

Sherpa Capital, the venture firm behind companies like Uber, Hyperloop One, Munchery and Shyp, has closed $470 million in new capital. That brings the total funding raised by the firm, co-founded by Shervin Pishevar and Scott Stanford, to $630 million.

As part of this new capital, a small portion of which the three-year-old VC firm raised from friends and family, Pishevar and Stanford have started two new funds: Sherpa Ventures II, which will be dedicated to early-stage companies, and Sherpa Everest, for mid-stage companies.

The funding comes at a time when, as Benchmark partner Bill Gurley wrote about at length, Silicon Valley companies have become over-funded and the investors who poured that money into them are (or at least should be) panicking. As more investors come around to Gurley's position, which is that too many companies have gotten too much money at obscene valuations, fewer may be willing to invest in tech companies as much and as often, making it harder for companies to raise new money which in turn may force them to lower their valuations.

That often leads to VC firms loading up on extra funding through special purpose vehicles before the valuation of their investments drop, Gurley argues.

But while part of Sherpa's new capital was raised from friends and family, it wasn't through a special purpose vehicle fund. In fact, the firm contends it raised well above its targets.

Sherpa has also brought on a new advisor to join Jim Messina, of the Messina Group: Padmasree Warrior, the U.S. CEO of Chinese electric car company NextEV and the former CTO of Cisco, will be closely advising the firm.

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