Source: CNBC
Summary
Sequoia Capital, a top venture capital firm, is facing scrutiny for selling the same equity at two different prices. According to a report, Sequoia sold a portion of its stake in a company to a secondary market at a lower price, while selling another portion to a new investor at a higher price. This practice, known as “dual pricing,” has raised concerns among investors and regulators. Sequoia has not commented on the matter. The firm has been a major player in the tech industry, backing companies like Apple and Google.
Our Reading
The announcement sounds ambitious.
Sequoia Capital sells same equity at two different prices, because why not? It’s not like investors are paying attention. Dual pricing is just a fancy term for “we’re making it up as we go along.” The firm’s silence on the matter is deafening. Sequoia’s been around since 1972, so they must know what they’re doing… or not. Meanwhile, investors are left wondering what other “innovative” pricing strategies are coming their way.
Author: Evan Null
