Sequoia Capital, which 15 months ago said it was moving to a “single fund structure,” revealed in a regulatory filing today that the new vehicle is valued at $13.6 billion.
The firm previously announced in October 2021 that it was moving away from the traditional venture capital model of raising individual funds with 10-year lifespans. Instead, “we are breaking with the traditional organization based on fund cycles and restructuring Sequoia Capital around a singular, permanent structure: The Sequoia Capital Fund,” firm managing partner Roelof Botha wrote in a blog post.
The regulatory filing states that the Sequoia Capital Fund LP offering sold $13.6 billion worth of shares to 354 investors. Venture Capital Journal understands that the total dollar amount actually represents shares in the fund plus cash commitments from LPs. We also understand that the number of investors does not reflect the number of LPs in the fund and instead refers to the number of entities that invested.
A separate regulatory filing states that Sequoia raised $4.3 billion for a vehicle called Sequoia Capital Fund Feeder LP. VCJ understands that the capital for that fund is included in the $13.6 billion total for the Sequoia Capital Fund.
Botha explained how the single-fund structure would work as follows:
“Moving forward, our LPs will invest into The Sequoia Capital Fund, an open-ended liquid portfolio made up of public positions in a selection of our enduring companies. The Sequoia Capital Fund will in turn allocate capital to a series of closed-end sub funds for venture investments at every stage from inception to IPO. Proceeds from these venture investments will flow back into The Sequoia Capital Fund in a continuous feedback loop. Investments will no longer have ‘expiration dates.’ Our sole focus will be to grow value for our companies and limited partners over the long run.”