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Sequoia’s Hidden Valuation Game
Published: 9 June 2026 at 04:01 Europe/London
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Episode notes
Venture capital’s valuation game is under fire as Brendan Foody slams Sequoia for inflating startup valuations through dual-tranche investments—where lead investors buy in at lower prices first, then later at inflated highs to create misleading “headline” numbers. While Sequoia defends it as a strategic move to attract talent and reflect market demand, especially in AI, critics argue it distorts reality for employees and angel investors. The tactic may inflate perceived worth, but actual stock option values often lag, and without independent appraisals for angels, perception becomes the new reality in a cutthroat startup world.
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