Mercor co-founder accuses Sequoia of 'dual-pricing' equity scheme in venture capital
By
Marina Temkin
Slow-proofed and worth the wait. Worth its weight in flour.
Summary
Brendan Foody, co-founder of the $10B AI talent platform Mercor, publicly called out Sequoia Capital for engaging in "dual-pricing" — selling the same equity to different investors at different prices. This practice, which Foody calls the "sequoia scam," involves Sequoia investing in rounds where it gets a better price than other investors for the same equity. The article discusses broader VC mistreatment of founders, including falling asleep during pitches and suggesting founders fire co-founders, with Foody's specific allegations against Sequoia highlighting a systemic issue in venture capital valuation practices.
Key quotes
· 2 pulledThe "sequoia scam" is worse than a single horror story
in the last 6 [months] ive seen a half dozen rounds where sequoia invests in 2 tranches at different prices for the same equity
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