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Sequoia Capital abandons fund structure for US, European holdings

Techcrunch  

Silicon Valley-headquartered Sequoia Capital is debuting a big shift in strategy as it looks to boost returns amid increased competition in the market for startup financing. The venture capital firm is abandoning the traditional fund structure for its US and European investments along with the accompanying “artificial” timelines for returning Limited Partner (LP) capital. The firm's future investments will soon all flow through a “singular, permanent structure” called The Sequoia Fund. Moving forward, Sequoia's LPs will invest into The Sequoia Fund, an open-ended liquid portfolio made up of public positions in a selection of our enduring companies. This fund will in turn allocate capital to a series of closed-end sub funds for venture investments at every stage from inception to IPO. As of now, the India and China-centric funds of Sequoia have been left out of the restructuring.