Sequoia Capital, one of the oldest venture capital firms, is putting together a restructured, single fund to be called the Sequoia Fund, the Financial Times (FT) reported.
The Sequoia Fund will take capital from investors, filtering it to the usual Sequoia venture funds that put money into U.S. and European startups, according to the report. The fund will also hold Sequoia’s stakes in publicly listed companies like Airbnb.
The plan is intended to give Sequoia more flexibility, likewise for its investors, the report stated. The investors won’t have to put their money just toward one VC fund for several years. And Sequoia will also be able to hold onto investments longer than other VC funds. Usually, other funds must return money to investors within 10 years.
Sequoia will also be filing with the U.S. Securities and Exchange Commission (SEC) to become a registered investment adviser, which will let it put more money into cryptocurrencies, public stocks and private shares that aren’t bought directly from firms, FT reported.
Endowments and other large institutions have seen strident gains in venture investments in the last year, according to the report. Public investors have been interested in tech companies, even ones that aren’t earning revenue. Venture capitalists have been investing more than usual.
Even though the median U.S. venture capital fund increased by 88.1% in the year through June, many returns are unrealized, the report stated. Companies are staying private longer, and venture capitalists are keeping public stakes to look for further gains.
Last month, Sequoia invested in Australian FinTech Airwallex, which got $200 million from the firm as well as other investors in its Series E funding round.