FinTech news in Snowflake category

When Sequoia’s portfolio company Stripe eventually goes public, for example, rather than distribute Stripe’s shares to its investors, Sequoia — assuming it has the blessing of its limited partners —  is more likely to move the prized company’s shares from the many different vehicles that it has used to back Stripe into its Sequoia Capital Fund with the expectation that those shares will continue to rise in value. Indeed, presumably to ensure some stability at its outset, Sequoia banned redemptions from the Sequoia Capital Fund for its first two years, though going forward, if its investors want some liquidity from Sequoia Capital Fund, they will have two chances each year to ask for this via some combination of shares and cash. The number represents two things: the value of the stock that Sequoia has rolled into its permanent fund from its legacy funds — these are shares in now-public companies that Sequoia backed as startups, including Airbnb, DoorDash, Unity, and Snowflake. Almost a year ago to the day, the 50-year-old investing powerhouse Sequoia Capital announced that it had reorganized itself around a singular, permanent structure: The Sequoia Capital Fund.