MENLO PARK, Calif. – Citing a desire to participate in more late-stage financing opportunities, Sequoia Capital Partners recently closed on the $350 million Sequoia Capital Franchise Fund, which will invest in the firm’s existing portfolio companies.
“We noticed over the years that a lot of value was created post-initial public offering,” said Sequoia General Partner Mark Stevens. “We will invest in opportunities created prior an IPO where we feel we can still get good value.”
The Franchise Fund has committed approximately $50 million to Sequoia portfolio companies since closing in late April, including MedicaLogic Inc., Broadband Sports and MP3.com. The fund, on occasion, will consider first time investments and will make its next investment in June or July, Mr. Stevens said.
The vehicle will invest $3 million to $15 million in Internet, communications equipment and enterprise software companies.
Stanford University, The Ford