SAN FRANCISCO - Khosla Ventures said on Tuesday it had raised $1 billion for one for renewable energy and clean technology funds, a sign that skittish investors are hot for climate-change related projects.

The venture funds' investments will range from improvements on renewable technology, like solar power, to efficiency and biofuels and new battery systems.

The funds are spearheaded by Vinod Khosla, a founder of Sun Microsystems and early proponent of biofuels. The $1 billion covers two funds, a Seed fund originally aimed at $250 million and Khosla Ventures III, targeted at early and mid-stage firms, had aimed to raise $750 million, it said. Both were oversubscribed.

(Reporting by Peter Henderson, Editing Leslie Gevirtz)