Sequoia says that without exits there is no problem.
The Silicon Valley venture titan increased the value of its Sequoia Capital US Venture XVII 2020 fund by 24.6% in June, at the end of a 12-month period, according to Proposal bookwho conducted an analysis of data from the University of California Regents’ endowment.
Sequoia’s profit margin is notable because the fund has not yet made any exits. This is also a favorable change for a 2020 crop of funds, given the fact that funds from that year are not expected to perform well for any VC after the frothy valuations of 2020 and 2021. The mismatch is likely is due to the high valuations of AI that give risk. a sense of recovery that has not yet materialized in other sectors. Sequoia is an investor in major artificial intelligence companies, including OpenAI, Glean, and Harvey, among others.
Sequoia raised more than $800 million for Fund XVII which closed in 2022.