Sequoia, One Hundred Million Dollar, Hundred Million Dollar discussed on Equity



Sequoia is a largely reacting to that i don't think they want the vision fund coming into their later stage deals and saying hey guys a here's here are terms they might not sort of sync up with his sequoias terms but we have all this money so do as we say i think sequoia wants to be able to back its own companies as long as it needs to i think it wants dessert us it you'll be able to say guys we've been with you from the outset and we want you to stick with us in wraps knock with the vision fund in any case neal shun also exceeded his told the financial times that things have changed you know sort of as we've been talking about here with earn brin left you know these companies expand globally really quickly they're just much more capital intensive in the upper half before and if you want to play the game you can't just be writing a hundred million dollar checks on ships right much larger checks but what's amazing we're talking about just you know amounts of money that we've never talked about a passed so quick capitals last global growth fund was two billion dollars i'm not sure when they closed that maybe last but those are not the only funds or this is not the only funding it's raising also is raising reportedly a two point three billion dollar china sequoia fund our sequester china so capital china by the firm is raising a nother growth fund in the us it's kind of hard to understand how these different fools are going to be kind of differentiated scott i would say first of all this is a pretty exciting time in venture no matter how you look at it we've never seen anything like this before and i think one of the things that this points to though is the general shift toward international thinking in venture in sequoia is not alone there's a lot of other firms of who are really thinking about okay we're going to build great companies might be in the us might be a these companies are going to become global companies faster than they ever have before and so we need to start thinking ahead about what is it going to take to get those companies into those regions into into a healthy place where they might one day exit but the other sort of the silver lining on this for earlier stage funds is that it it creates this optimism toward raising being able to raise a larger round later to help grow these businesses because if you're a an a round or a be round vc firm in you've got a really hot company you know turn the clock back a few years five years ago you wouldn't have had that same optimism to say iva capitalintensive business that wants to expand internationally and i just don't know if we're going to be able to raise that fifty seventy five or one hundred million dollar round because they're just what they weren't those mega funds out there to be able to do that but the in sort of the darker side of that silver lining is that it also has the potential to push out ipo's because you know you start it companies that would have exited potentially earlier now starting to think well let's just do a secondary offer and just extend out and just get our build our business make it larger so that when we do actually get quired or we go public we actually the you know the company looks even stronger out paper so there's also another consideration for earlier stage investors knowing that there's going to be essentially a longer road to exit can ask does norwest to international investing or is it something that the firm is talking about we do we do we have partners actually in india in israel and here in the us so we do we do invest internationally because there's so many really great firms in silicon valley they're still only investing in the us and it's sort of interesting to me and i feel like sequoia did it right i mean i don't think we're necessarily paying very close attention here but twelve years ago it set up the shops in india and china and now they're really reaping the rewards in it's sort of a little bit late for other firms there were the firms like heiner organs among others sort of tried to get into china backed out a.

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