Private Equity

Fund News

Sequoia Capital changes regulatory status to broaden investment scope

Mint  

In a bid to expand the types of deals it does, US-based Sequoia Capital has become a registered investment adviser with the Securities and Exchange Commission (SEC). The change reflects the expansion of the Menlo Park, California-based firm's investment strategy from its original focus on backing early-stage Silicon Valley technology startups. Sequoia described its current strategy of investing primarily in seed, early and growth stages in companies in sectors such as business and consumer technology, financial services and energy. It also makes deals that aren't traditional for venture firms, such as buying public stock and crypto assets, as well as the possibility of sponsoring a special-purpose acquisition company, or SPAC. The registration expands its flexibility to support its portfolio companies through various financing events, such as secondaries or IPOs. It also enables Sequoia to further increase its investments in emerging asset classes such as cryptocurrencies and seed investing programs. The change applies only to Sequoia's US and European businesses.