Sequoia Capital | Founder | Business Model | Investments (2024)

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Sequoia Capital is an American venture capital firm. The firm is known to have backed companies that are now controlling $1.4 trillion of the total combined value of the stock market. Among the popular companies that Sequoia has invested in includes big names like Apple, Oracle, Youtube, Instagram, Zoom, Google, and more.

It has raised a record $19.2 Billion to support Indian and Southeast Asian start-ups.

Sequoia Capital is headquartered in Menlo Park, California, and mainly focuses on the technology industry. Sequoia seeks to invest in energy, financial, enterprise, healthcare, internet, and mobile startups.

Sequoia - Company Highlights

Sequoia Capital - Latest News

Sequoia Capital - Founder and History
Sequoia Capital - Name, Logo and Tagline
Sequoia Capital - Mission and Vision
Sequoia Capital - Business Model
Sequoia Capital - Investments
Sequoia Capital - Acquisitions
Sequoia Capital - Competitors
Sequoia Capital - Challenges Faced
Sequoia Capital - Future Plans
Sequoia Capital - FAQs

Sequoia Capital - Latest News

9 August, 2021 - Sequoia Capital's partial exit from the Indian merchant platform, Pine Labs has resulted in mopping up around $230M for the firm.

2 July, 2021 - Sequoia Capital unveils its fifth cohort of Surge, the accelerator program it has designed for India and Southeast Asia, where the company has named 23 early-age startups. Surge 05 has already raised around $55 million and is believed to be the largest cohort of the firm to date.

March 2021 - Sequoia Capital India closed a $195 Mn seed fund to support start-ups in the country. The firm has raised $195M to support Indian and Southeast Asian start-ups, more than double the amount invested in a two-year-old accelerator program.

October 2019 - Surge, the brainchild of Managing Director Shailendra Singh, began in 2019 with the aim of providing upstarts with $1 million to $2 million in upfront funding, as well as training and time with leading lights including Sequoia partner Michael Moritz and Stripe Inc. co-founder Patrick Collison. Since then, sixty-nine entrepreneurs from four phases have raised a total of $172M in funding, with 30 companies from the first three cohorts raising a total of $390M after completing the program.

Sequoia Capital - About & How It Works?

Sequoia Capital (an American venture firm) specializes in incubation, seed, start-up, early, development, emerging growth, mature, mid-venture, late-venture, and PIPE investments in private and public companies in the fintech field. The firm is interested in investing in a variety of industries, with a particular emphasis on oil, financial services, healthcare, the Internet, mobile, outsourcing, and technology.

Sequoia focuses on economies rather than individuals. Sequoia does not aim to build new markets, but rather to invest early in those that already exist. As a result, instead of concentrating on a founder's credentials, they concentrate on market size and trends associated with a concept.

Sequoia Capital - Founder and History

Sequoia was founded by Don Valentine in 1972 in Menlo Park, California.

Valentine turned the company over to Doug Leone and Michael Moritz in the mid-1990s. Sequoia extended its activities to Israel in 1999. Sequoia Capital China, a subsidiary of the American firm, was established in 2005. Sequoia Capital bought an Indian venture capital company, Westbridge Capital Partners, in 2006. Sequoia Capital India was renamed later. Sequoia Capital was named the best venture capital company in 2013 by CB Insights. As of 2016, the company in the United States had 11 partners.

As the senior partner, Leone was in charge. Moritz remained an involved investment partner, but he relinquished his managerial responsibilities in 2012 after being diagnosed with an undisclosed illness that, he said, could reduce his quality of life over the next five to ten years.

In 2020, Sequoia set up its first European office in London, UK and hired Luciana Lixandru to lead it.

Sequoia Capital - Name, Logo and Tagline

Sequoia Capital logo is its name written in block letters and a green symbol next to it which symbolizes "organic" or "natural".

Its tagline says, "We help the daring build legendary companies."

Sequoia Capital - Mission and Vision

Sequoia's mission statement is, "Sequoia exists to come through for people who put their trust in us. Our mission, our core values, and our definition of success are all based on helping you get the most out of your investment in people."

Sequoia Capital - Business Model

Sequoia Capital is a stage-agnostic investor that has funded and sponsored over 1500 companies around the world, focusing primarily on technology and innovation. These firms now have a total stock market valuation of $1.4 trillion, thanks to Sequoia Capital's financial funding and incubation.

• Sequoia works with markets not people - Sequoia's goal is not to develop new markets, but to capitalize on existing ones as soon as possible. As a result, instead of concentrating on a founder's credentials, they concentrate on market size and trends associated with a concept.
• Sequential market identification - They invest in complementary methods and software that will operate alongside the initial upcoming innovations and markets because they invest systematically.
• Different, not better - Sequoia claims that being unconventional pays off, so they deliberately search out solutions that defy tradition in order to address future issues in more imaginative and successful ways.
• Maximize top performers - Whereas many venture capital firms only establish short-term incubation partnerships, Sequoia has a track record of making long-term investments that capitalize on the growth of top-performing firms.
• Partial funding - Sequoia does not provide businesses with all of the financing they need right away, preferring to partially finance companies in order to track founders' performance from the start.
• Cut businesses that don’t meet expectations -Don Valentine, the company's founder, reports that Sequoia has closed about 0.5 per cent of businesses that aren't hitting performance targets in order to reduce losses.
• Software as a priority - Sequoia's most recent investments have leaned heavily into tech, including SaaS, business software, and e-commerce and healthcare platforms.
• US and China lead the way - The majority of Sequoia's current investments are in the United States - mostly on the West Coast - and China, with India quickly becoming a solid investment market.

Sequoia Capital - Investments

Sequoia Capital has made 1,623 investments. Their most recent investment was on 1 February, 2022, for $7M in Galaxy Fight Club.

Sequoia has offloaded its shares worth $225-230 million, which it has further transferred to the new investors. This is the third time that Sequoia has offloaded shares from Pine Labs, which is really showing up to be one of the best bets of Sequoia among the B2B companies.

Sequoia Capital - Acquisitions

Sequoia Capital - Competitors

The top 10 competitors in Sequoia Capital's competitive set are:

• Accel Partners
• Inventus Capital Partners
• Trinity Ventures
• Andreessen Horowitz
• GV
• KPCB
• Greylock Partners
• Norwest Venture Partners
• Citi Ventures
• Benchmark Capital.

Sequoia Capital - Challenges Faced

Because of the Covid-19 crisis, the company has faced the following challenges:

• Drop-in market activity: Between December and February, the company's growth rates dropped dramatically.
• Supply chain disruptions - China's unprecedented economic blockade is having a direct effect on global supply chains. Alternative suppliers may be needed by hardware, direct-to-consumer, and retailing companies. Pure tech companies are less vulnerable to supply chain disturbances, but they are also vulnerable due to economic cascading impacts.
• Curtailment of travel and cancelled meetings: Company has banned all “non-essential” travelling.

Sequoia Capital - Future Plans

By cultivating relationships with global corporations and financial investors, the Strategic Development team aids Sequoia's portfolio companies in planning and achieving their financial and strategic goals, such as establishing strategic alliances, raising money, and M&A. Sequoia Capital India has raised $1.35 billion from limited partners for two new funds, as the storied venture firm aims to expand its investments in the world's second-largest internet market and Southeast Asia.

According to Shailendra Singh, a managing director at Sequoia Capital India, the two new funds - a $525M investment fund and an $825 million growth fund - will help the VC company, which operates in India and Southeast Asia through one arm, better serve the startup ecosystem in the country.

“A fundraise represents a massive responsibility to deliver attractive returns to Sequoia’s Limited Partners, the majority of which are nonprofits, foundations and charities. We do this by partnering with outstanding founders who are building category defining companies,” he said.

Sequoia Capital - FAQs

What is Sequoia Capital?

Sequoia Capital is an American venture capital firm. The firm is headquartered in Menlo Park, California and mainly focuses on the technology industry.

What are the top sectors sequoia capital invests in?

Sequoia Capital seeks to invest in all sectors with a focus on energy, financial, healthcare, Internet, mobile, outsourcing, and technology.

Who is the founder of Sequoia Capital?

Sequoia was founded by Don Valentine in 1972 in Menlo Park, California.

Who is the owner of Sequoia Capital?

Doug Leone and Michael Moritz owns the ventures capital firm.

Does Sequoia invest in seed?

Yes, Sequoia Capital invests in seed funding.

What stages of funding Sequoia Capital invests in?

Sequoia Capital invests in different investment stages:

• Early Stage
• Venture
• Growth stage
• Late Stage Venture