Sequoia doesn't participate in the seed rounds in this case. They have the same relationships to the startups we fund that Sequoia LPs have to startups they fund. They're entitled to a percentage of our returns, but they don't pick the companies or own stock in them.

Also, within the industry the phrase "passing on a deal" does not mean anything as casual as it sounds. It implies that an investor has scrutinized it fairly closely and made a conscious decision not to invest.