Two of Sequoia Capital’s largest bets have been cratering on the public markets — yet the firm still holds the vast majority of its original owner

Sequoia Is Down Bad - by Eric Newcomer - Newcomer

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2022-06-21 21:30:09

Two of Sequoia Capital’s largest bets have been cratering on the public markets — yet the firm still holds the vast majority of its original ownership positions.

If Unity and DoorDash’s share prices don’t rebound significantly, Sequoia may have missed out on more than $7 billion in returns.

Those two bets — along with companies like Airbnb and Snowflake — are among Sequoia’s most important portfolio companies.

Unity helped propel Roelof Botha — who was recently appointed to the top job at Sequoia — to number three on the Midas List in 2020.

Meanwhile, DoorDash is Sequoia partner Alfred Lin’s shining investment that helped secure him the top spot on the Midas List in 2021.

In 2021, Sequoia embraced a strategy of holding on to its winning venture capital investments as public companies. Botha, who would become the firm’s senior steward, spearheaded the strategy shift that created “The Sequoia Capital Fund.” The new structure established a perpetual fund where Sequoia can hold companies indefinitely. 1

Sequoia stuck to that plan for both game development platform Unity and food delivery company DoorDash. The firm has white-knuckled its shares even as their stock prices have tanked.

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