Predict your next investment

Sequoia company logo
BUSINESS PRODUCTS & SERVICES | HR & Staffing
sequoia.com

See what CB Insights has to offer

Founded Year

2001

About Sequoia

We are the HR and benefits service partner that helps people-first companies get the most out of their investment in people.

Sequoia Headquarter Location

1850 Gateway Drive Suite 700

San Mateo, California, 94404,

United States

+1 650 369 0200

Latest Sequoia News

Sequoia changes its model as other permanent-capital VC firms weigh in

Nov 22, 2021

Posted On: In the U.S. venture capital market, Sequoia’s decision to become a registered investment adviser (RIA) and move to a “single, permanent structure” landed with a bang. However, it shouldn’t have caused quite as many waves as it did. As a United States-based venture capital firm, Sequoia was not the first to opt for RIA status, nor was it the first VC firm that The Exchange tracks to move to a more permanent capital model. An RIA and a capital pool with no artificial return windows may be notable in the United States, but there are examples of this elsewhere. The Exchange spoke with Augmentum Fintech COO Richard Matthews, Molten Ventures partner Vinoth Jayakumar, and Forward Partners managing partner Nic Brisbourne to learn more about Sequoia’s investment strategies. I have spoken to them before, when we explored the advantages and costs of VC companies going public. The firms promoted their ability to invest over a longer time horizon and provide access to venture capital for a more general audience. Sequoia’s shift, said investors, is similar to their own setup in its ability to provide more flexibility for returns-timing – perhaps allowing greater returns maximization – but distinct in who it benefits. Shift in Sequoia Roelof Botha, a partner at Sequoia, recently explained the firm’s model shift on a podcast. During the show, he stated that Sequoia advises “founders that the IPO is a milestone” – not the finish line – for a startup. As a result, he asked rhetorically, why “should the IPO be a destination for investors”? Sequoia’s new model is to hold investments for a longer period of time, which requires the VC to hold stocks over a long time horizon. Venture capital rules require RIAs to hold 80% of their assets in private companies, loosely, and no more than 20% in other assets. Therefore, if a venture capitalist scores a big win with a startup that goes public, there may be pressure to liquidate some of the VC’s position. As a result, venture capital firms tend to exit investments sooner than they would like, i.e., before the investment has fully generated profit – and, therefore, returns for both venture fund backers (LPs) and venture fund managers (GPs). The one thing that all venture capital investors have in common is that they want to make a profit. As Botha said in the same podcast, Sequoia “realized” that the best venture investments continued to compound after the IPO. The balance has changed as private companies remain private longer. In some cases, however, big returns generally happen after an IPO. To pick one example, Shopify is an obvious example of how money can be made through a public offering. In a recent report from OpenView, it is noted that Salesforce has seen its valuation grow by 210x since its 2004 IPO. The venture group noted Shopify’s stock price has increased 143x since its IPO. ServiceNow’s stock price increased 60x since its IPO. GPs can earn massive returns – and therefore huge checks – from holding certain investments post-debut.

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

Sequoia Patents

Sequoia has filed 1 patent.

The 3 most popular patent topics include:

  • Cuttlefish
  • Graphical projections
  • Honeycombs (geometry)
patents chart

Application Date

Grant Date

Title

Related Topics

Status

4/5/2018

6/2/2020

Technical drawing, Graphical projections, Medical equipment, Cuttlefish, Honeycombs (geometry)

Grant

Application Date

4/5/2018

Grant Date

6/2/2020

Title

Related Topics

Technical drawing, Graphical projections, Medical equipment, Cuttlefish, Honeycombs (geometry)

Status

Grant

Sequoia Web Traffic

Rank
Page Views per User (PVPU)
Page Views per Million (PVPM)
Reach per Million (RPM)
CBI Logo

Sequoia Rank

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.