Hedge fund Artis Capital Management scored big when it partnered with Sequoia Capital to invest in YouTube. The firms kept the relationship quiet. Artis prefers to keep its business private. You need a password just to get onto its website. But we broke the news when the deal was done.
But YouTube isn’t the only startup the hedge fund has invested in, just the most successful. Artis has also backed at least three other Sequoia startups in the last year and a half. Now we’ve got the scoop on how the two firms are related. A Sequoia partner has a son that works at Artis. PE Week subscribers can find out who it is.
There’s nothing wrong with that. But if any of Sequoia’s GPs are Artis investors, it could prove problematic, VCs told me.
I won’t speculate how a VC firm might use a hedge fund to its advantage until I know there’s a financial link between Artis and Sequoia.
Please call me at 415-344-3996 if you know anything about it.