IPO Frenzy This Week Nets Billions for Venture Capital Backers

Billions of dollars could be on the way to Sand Hill Road this week, home base for Silicon Valley’s venture capital elite, after a string of initial public offerings.

Venture firms netted handsome returns on paper for their early investments. While the firms mostly won’t be able to sell their shares until lockup periods expire, proceeds from exits could provide the cash for them to fund the next generation of startups.

Snowflake Inc., which was trading at a $65 billion valuation Friday, has provided the biggest windfall so far for its early shareholders. Sutter Hill Ventures, which invested ...