Palo Alto Networks CEO Advises Daughter on New AI-Focused Venture Capital Fund

These days, raising a new venture fund can seem like an uphill battle. First-time managers are competing with much bigger funds that can lure founders with rich valuations—as well as track records that can wow limited partners.

But what if you had unfettered access to some sage advice from a seasoned investor and executive?

That’s the case for Ayesha Arora-Hughes, the daughter of Palo Alto Networks CEO Nikesh Arora. Ayesha is raising her own VC fund, Permanent Partners Collective Fund I, according to a securities filing and people with knowledge of the matter—and she counts Nikesh as an adviser to the firm, one of the people said.

Ayesha is targeting raising over $100 million for the fund to back AI companies, from startups developing AI applications to those making the infrastructure that powers and runs AI, one of the people said. And she’s already made her first investment, the person added, though which startup she backed couldn’t be learned.

Nikesh has plenty of experience with startups and investment firms. Before joining Palo Alto Networks, he served as president and chief operating officer of SoftBank when the Japanese conglomerate made an effort to invest in emerging markets like India, backing companies including ride-hailing service Ola and e-commerce marketplace Snapdeal.

He’s now the chair and CEO of Palo Alto Networks, a frequent buyer of startups. Most recently, Nikesh has been on the hunt for new cybersecurity startups, a search undergirded by the belief that the sophistication of AI agents will reshape how companies protect their IT systems against cyberthreats.

And in April, megafund General Catalyst appointed Nikesh to serve as the firm’s first lead independent director on its board.

Ayesha previously worked at VC firm S32, which she left in July, and has invested in companies including coding agent Factory, legal tech startup Legora and chip designer Etched, according to her LinkedIn.

Ayesha isn’t the first child of a tech executive to launch their own investment firm. In 2023, Reed Jobs, the eldest son of late Apple co-founder Steve Jobs, founded his own venture fund, Yosemite, to focus on investments in cancer-related startups.

Jobs’ VC firm, now three years old, initially set out to raise $400 million and has accumulated $1.2 billion in assets under management, according to data firm PitchBook.