Freeberg

Yeah, they subsidized it.

Yeah, they subsidized it.

Can you give us an update here at the end of the show, Freeberg on scholarships and what people have been asking for the Olin Summit?

Can you give us an update here at the end of the show, Freeberg on scholarships and what people have been asking for the Olin Summit?

All right, let's just do one quick business story here since we spent the bulk of the episode talking about politics and current events. Exits creeping back. Sequoia is doing a secondary sale of their Stripe investment, one of the greatest investments of the last decade. And Google is in talks to acquire Wiz. And this is absolutely amazing news for Sequoia.

All right, let's just do one quick business story here since we spent the bulk of the episode talking about politics and current events. Exits creeping back. Sequoia is doing a secondary sale of their Stripe investment, one of the greatest investments of the last decade. And Google is in talks to acquire Wiz. And this is absolutely amazing news for Sequoia.

the industry, which has been suffering from a lack of distributions. As you can see in this chart, Chamath, after 2021, exit values just plummeted. And there are some signs of life now. Let's start with Sequoia buying back some Stripe shares from its own LPs. Sequoia Capital has invested $517 million in Stripe. That's currently worth about $10 billion.

the industry, which has been suffering from a lack of distributions. As you can see in this chart, Chamath, after 2021, exit values just plummeted. And there are some signs of life now. Let's start with Sequoia buying back some Stripe shares from its own LPs. Sequoia Capital has invested $517 million in Stripe. That's currently worth about $10 billion.

20X, Michael Moritz, led the seed in Series A. Sequoia offered to buy back $860 million in Stripe shares from LPs in its legacy funds. Those are the funds between 2009 and 2012. Sequoia is using capital from their newer funds, like its Evergreen Fund that was formed in 2021, the Heritage Fund, that's their wealth management team, to give the legacy funds some liquidity. It's not normal.

20X, Michael Moritz, led the seed in Series A. Sequoia offered to buy back $860 million in Stripe shares from LPs in its legacy funds. Those are the funds between 2009 and 2012. Sequoia is using capital from their newer funds, like its Evergreen Fund that was formed in 2021, the Heritage Fund, that's their wealth management team, to give the legacy funds some liquidity. It's not normal.

that a company stayed private this long. It is the exception to the rule, but it has happened. It actually happened with Uber to a certain extent. So legacy fund LPs have the choice, Sachs, to hold, sell some, or sell all of their Stripe shares. Here's the quote from the note.

that a company stayed private this long. It is the exception to the rule, but it has happened. It actually happened with Uber to a certain extent. So legacy fund LPs have the choice, Sachs, to hold, sell some, or sell all of their Stripe shares. Here's the quote from the note.

Sequoia personnel and associated persons will not be offered the option to sell Stripe shares previously received as carried interest distributions from the legacy funds. And they are offering $27.50 a share, which is pretty generous, $70 billion valuation. As you may know, Stripe has hit as high as $100 billion in market cap in the private markets.

Sequoia personnel and associated persons will not be offered the option to sell Stripe shares previously received as carried interest distributions from the legacy funds. And they are offering $27.50 a share, which is pretty generous, $70 billion valuation. As you may know, Stripe has hit as high as $100 billion in market cap in the private markets.

So this will be a, from the seed, which was a $20 million post, $3,500x for those LPs. And for the Series A, it is a $100 million post, which is 700x. For those people who don't know, I think it was Sam Altman who actually did that investment as a Sequoia Scout in the same fund that I did the Uber investment. So still the number one and two investments there.

So this will be a, from the seed, which was a $20 million post, $3,500x for those LPs. And for the Series A, it is a $100 million post, which is 700x. For those people who don't know, I think it was Sam Altman who actually did that investment as a Sequoia Scout in the same fund that I did the Uber investment. So still the number one and two investments there.

Your thoughts, Jamath, on this unique opportunity and device to sell early shares from the same venture fund?

Your thoughts, Jamath, on this unique opportunity and device to sell early shares from the same venture fund?

And so I suspect that that probably- Well, they did say that the GPs aren't going to get to liquidate anything. So they did put that note in there. So they've anticipated that.

And so I suspect that that probably- Well, they did say that the GPs aren't going to get to liquidate anything. So they did put that note in there. So they've anticipated that.