In a move that sets it apart from other venture capital firms, Benchmark Partners, a stalwart of Silicon Valley's startup ecosystem, is raising an additional $170 million for a partners-only fund. This separate fund, dubbed Benchmark Partners Founders' Fund I, will be primarily backed by the firm's partners, past and present, with some room for friends and family to join in.

This unusual strategy allows Benchmark's partners to double down on their investments without having to manage limited partner money. The firm, known for its early investments in companies like eBay, Snap, Uber, and Twitter, has returned billions to its backers over the years, often multiplying the original funds by as much as tenfold.

Benchmark's approach is a departure from the norm, where venture capital firms typically raise large funds from limited partners. The firm's equal partnership structure, where each partner shares an equal percentage of management fees and profits, may be a contributing factor to this unique strategy.

The move is not unprecedented, however. Homebrew, a VC firm founded by Satya Patel and Hunter Walk, stopped taking limited partner money altogether in 2022, and Sequoia's separate wealth management firm, Sequoia Heritage, was seeded with $150 million from its partners.

This development is significant for the tech and startup community, as it highlights the evolving nature of venture capital and the desire for firms to differentiate themselves in a crowded market.