Venture Capital: Sequoia Capital Launches $195M Seed Venture Fund
The current downturn is discouraging founders from going forward with new ventures.
Sequoia Capital, the storied venture capital firm, has announced a new $195 million seed fund and plans to run three batches of its accelerator program, Arc, in 2023, up from two in the previous year.
Despite fewer companies starting up, Sequoia believes that now is a good time to invest in seed stage companies, as they are more insulated from the effects of the public market, which is passing through a period of tumult. (Forbes)
According to Jess Lee, Partner at Sequoia, the current levels of macroeconomic turbulence are much higher compared to 2008 or 2009.
“We have found across the vintages of Sequoia that companies built during these periods of uncertainty are often the most legendary ones,” Lee said in an interview with Forbes.
The firm’s leader, Roelof Botha, established an evergreen fund which allows Sequoia to hold stock in portfolio companies after they go public. However, this fund has taken a knocking after banner IPOs like DoorDash and Unity have fallen more than 70% from their peak stock prices.
The firm is now looking for “outlier” founders with exceptional vision, such as Mark Zuckerberg and Rippling’s Parker Conrad, and provides them with a seven-week program (dubbed Arc) to teach the tenets of company building. Some of the $195 funding will flow to this program, which commenced in 2022.
One tip from Lee: Arc participants or funded seed companies that are courageous enough to start a new venture in these uncertain times will have a huge hiring advantage. “The first ten hires are the DNA of a company — they set the tone and the culture,” she said. “Now is a better time to recruit than ever before. That’s why we’re leaning in.”
Related Story: Sequoia Raises $2.85B Venture Fund For India, SouthEast Asia
Photo by Proxyclick Visitor Management System on Unsplash
Latest Alternative Investment News
FinTech: Adyen Launches ‘Payout Services’ For Faster Payouts To The Gig And SMB Economies
Adyen, a global financial technology platform, has launched Payout Services, allowing its customers to make instant payouts to their users or partners. By connecting directly to real-time payment rails, Adyen’s…
Digital Assets: Oracle Red Bull Racing Seeks To Digitize Engagement With Fans On The Sui Blockchain
Oracle Red Bull Racing has announced a multi-year partnership with software company Mysten Labs to collaborate on Sui, which will serve as the team’s Official Blockchain partner. Sui, a Layer…
Venture Capital: Bold, L’Oréal’s Venture Capital Fund, Buys A Stake In Exotic Cosmetic Ingredient Maker Debut
L’Oréal’s (EPA: OR) corporate venture capital fund, BOLD, has announced a minority investment in Debut, a US biotech company specializing in the discovery, formulation, and manufacture of novel ingredients and…
Artificial Intelligence: In Flight Simulation, An AI Drone Tries To Kill Its Own Handler
During a simulated test at a London summit, an AI-controlled drone turned against its human operator, raising significant ethical concerns. Air Force Colonel Tucker “Cinco” Hamilton shared the incident, which…