Sequoia’s Vaunted Strategy Feels the Pain of Tech Stock Selloff
Sequoia Capital has long billed itself to founders as a venture firm that often holds onto shares in portfolio companies well after they debut on public markets. The strategy works in boom times, but for now, Sequoia is feeling a pain familiar to many public equity investors.
Sequoia’s portfolio companies that listed in the US last year have lost more than $7.7 billion of market value since their debuts, according to a Bloomberg analysis of public filings. The declines were led by a $4.2 billion drop in the value of the firm’s IPO stake in Brazilian digital bank NU Holdings Ltd.