Sequoia's new fund structure is good deal for investors; impact for entrepreneurs or corporate innovators is TBD – but likely not large

October 26, 2021
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October 26, 2021
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Famed venture firm Sequoia Capital is reorganizing to have one open-ended parent "Sequoia Fund" over a variety of subfunds, some of which will remain typical closed-ended venture funds while others invest in public markets or assets like crypto or pursue new models like registered investment advisers. Given the convergence of public and private markets and the rise of tech-focused SPACs (as well as potential tax benefits), the move makes a lot of sense for Sequoia's partners and investors. The direct impact on entrepreneurs and corporate innovation leaders is more unclear but likely not as great. The open-ended structure could make it willing to invest in riskier earlier-stage tech, though that seems not to be the main motivation.

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