Sequoia’s Leone: In Venture, Big is the Enemy of Great

Re:Sequoia’s Leone: In Venture, Big is the Enemy of Great by 1123581321 on Monday December 10, 2012 @05:01PM (#4901749)

“We have co-opted seed funds. You know, Y Combinator, that was completely our money. We have secret handshakes with a whole bunch of people. Very dangerous, because word gets out that so-and-so’s money is Sequoia’s money, that would not be a good thing.

Do I correctly understand that Paul, Jessica et al are investing Sequoia money, or that they are somehow a large partner? Would someone please explain this paragraph from the article?

Update: Is this what he was referring to? http://m.techcrunch.com/2010/05/21/y-combinator-closes-new-8...

I wouldn't exactly call it a "co-opt"; I am still interested in whatever insight someone shares.

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Re:Sequoia’s Leone: In Venture, Big is the Enemy of Great by dougleone on Monday December 10, 2012 @08:10PM (#4902575)

Oops. Co-opt was an incredibly poor choice of words in a live presentation. What I meant to say is that we've been partnering with YC startups since 2005 and between 2009 and 2012 we were the biggest LP in two of their funds. We’ve had a terrific relationship with Paul and Jessica and are thrilled to be associated with them.

My handshakes comment referred to our now well-documented Scouts program. It started out stealthy because it needed time to develop and the scouts didn't want the attention. Scouts regularly disclose our relationship to founders and the wire transfer always comes from Sequoia. These two efforts represent some of our attempts to work with very talented entrepreneurs (like Brian and Drew) as early as possible so that we may help them build enduring companies.

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Re:Sequoia’s Leone: In Venture, Big is the Enemy of Great by 1123581321 on Monday December 10, 2012 @10:19PM (#4902865)

Much appreciated and thanks for joining to answer.

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Re:Sequoia’s Leone: In Venture, Big is the Enemy of Great by jl on Monday December 10, 2012 @05:16PM (#4901821)

Yes, Sequoia was the biggest LP in the two funds we had in the past, as everyone already knew. Beyond that, I don't have any insights about this article.

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Re:Sequoia’s Leone: In Venture, Big is the Enemy of Great by apalmer on Monday December 10, 2012 @05:04PM (#4901766)

seems like the most relevant question for this forum

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