Surely the name of Sequoia Capital sounds like one of the companies that invest their money in companies like Apple, Google, PayPal, Stripe, Instagram and WhatsApp, among others. But now the story is a bit different since they are the ones who want to receive the support of other investors. creating a fund between 5,000 and 6,000 million dollars (between 4,200 and 5,062 million euros) to continue investing in startups.
Sequoia Capital seeks to launch a huge investment fund
Well-known Silicon Valley venture firm Sequoia Capital is already in the early stages of , and this fundraising is expected to be start during the first quarter of 2018. This amount, in fact, doubles the size of its last growth fund created in 2015, which reached 2,000 million dollars (1,687 million euros).
In fact, some sources such as point out that some other firms of are considering a fundraiser of this magnitude and even greater, and the reason in large part is the pressure of having greater capital reserves due to the “Soft bank effect”.
Startups in the final stages, the great beneficiaries of this Sequoia macro fund
, Sequoia Capital is interested in purchasing in its ongoing public offering. These will be the discounted shares that will be acquired from existing investorsand the Japanese firm Softbank heads the list of interested investors.
In fact, although 5,000 million dollars (4,200 million euros) may seem like a large sum of money, they are almost nothing compared to the $100 billion (84,390 million euros) that Softbank has raised for its Vision fund. With this, the landscape has changed for late-stage startups since they will have great options to capture quite large checks.
The soft bank effect
Softbank’s Vision Fund is considered the world’s greatest tech and has the support of large technology companies such as Apple, Qualcomm or Sharp, as well as the sovereign funds of Saudi Arabia and the United Arab Emirates.
Until now, he has used part of his money in various investments, among which the $250 million (210 million euros) that he invested in . its large size has changed the landscape of Silicon Valleyworrying the community of investors, including Sequoia Capital, who are trying to strengthen themselves, in what has been called the Softbank Effect.
Sequoia’s Great Landmarks
The money invested in highly valued so-called startups has led to funding rounds and venture capital firms. to achieve historical records in their figures. In addition to having invested in most established companies What Airbnb and 23AndMe, Sequoia Capital also has a significant early-stage startup investment business.
In fact, Sequoia Capital has had a hot run in terms of results in recent years. Thus, they managed to invest in the instant messaging application for the not insignificant amount of $19 billion (approximately 16,034 million euros).
At the moment the Sequoia fund will take time to be ready, and it is not certain how much it will be able to raise or which companies will participate in the investment betting on this new fund, so it will be a matter of waiting to know how these new large funds will move.
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