I’ve solely been in the identical room as Sequoia Capital’s Roelof Botha twice, however every time he’s struck me as very upright, and even correct. The kind of particular person I can’t think about being harried, frantic, or raveled.
So, it’s onerous for me to think about what Botha—who turned Sequoia’s senior steward in 2022—will need to have been like enjoying rugby in his twenties. Then once more, in my restricted understanding of rugby, it’s a sport notable each for its brutality and the oddly elegant steeliness (and order) it calls for. (Oscar Wilde’s well-known bit about this: “Rugby is a game for barbarians played by gentlemen. Football is a game for gentlemen played by barbarians.”)
However by way of that lens, Botha’s love for rugby begins to make good sense. Fortune’s newest cowl story by Michal Lev-Ram provides readers a view into how Botha is considering Sequoia’s future, at a time that’s complicated for the agency and tumultuous for enterprise capital. From 2019 to the center of this yr, Sequoia has paid out $43 billion in distributions to its investor base (it’s unclear how a lot of this hyperlinks to the 2021 enterprise growth that’s since cycled right into a bust). In the present day, VC is within the midst of a well-documented LP crunch, as 2021 valuations come again to hang-out the business at giant. And Sequoia has its personal frictions: The agency is tied up in a few of Elon Musk’s companies, like Twitter (now X) and xAI. (Sequoia can be invested in OpenAI.) The agency spun off its China arm final yr, addressed the implosion of portfolio firm FTX the yr earlier than, and described 2022 as a “crucible moment” in a memo.
Amid all this, Botha has taken steps to maneuver Sequoia away from the standard enterprise mannequin, as Lev-Ram writes:
One of many methods Botha has tried to reinvent Sequoia is by departing from the standard 10-year cycle of VC funds. Such funds normally reap their returns by way of startup “exits”—IPOs or acquisitions. However they usually miss out on the large worth that may be created after an organization goes public. What’s extra, funds’ 10-year timelines can induce angst when exits decelerate as a result of short-term market downturns or crackdowns on M&A exercise.
That’s why, in February 2022, Sequoia launched the Sequoia Capital Fund, an “open-ended liquid portfolio” whose holdings embrace post-IPO fairness in portfolio firms, together with allocations in additional conventional funds. The agency goes all in, reorganizing itself round this new construction. Botha’s timing was unfortunate, as tech shares tanked that yr. However in some methods, that was the purpose: The technique is supposed to assist Sequoia capitalize on investments over the long run, whether or not the market is up or down.
Botha doesn’t play rugby anymore. However in a second of skittishness throughout enterprise capital, Botha and Sequoia will likely be well-served by the structured toughness he gleaned from the game.
The story covers Botha’s rugby previous, Sequoia’s future, and rather more. This weekend, learn the entire story right here.
See you Monday,
Allie Garfinkle
Twitter: @agarfinks
E mail: alexandra.garfinkle@fortune.com
Submit a deal for the Time period Sheet publication right here.
Joe Abrams curated the offers part of immediately’s publication.
VENTURE DEALS
– Headway, a New York Metropolis-based platform designed to attach customers with psychological well being care, raised $100 million in Collection D funding. Spark Capital led the spherical and was joined by current traders Thrive Capital, Accel, and a16z.
– Gcore, a Luxembourg-based AI, cloud, community, and safety options supplier, raised $60 million in Collection A funding. Wargaming led the spherical and was joined by Constructor Capital and Han River Companions.
– Stage AI, a Mountain View, Calif.-based developer of AI functions for contact facilities, raised $39.4 million in Collection C funding. Adams Road Companions led the spherical and was joined by Cross Creek, Brightloop, and others.
– NPC Labs, a New York Metropolis-based gaming platform based mostly on the Base ecosystem, raised $18 million in seed funding. Pantera Capital led the spherical and was joined by Makers Fund, Hashed, Collab+Forex, Sfermion, Mirana Ventures, and others.
– Revi, a San Francisco-based developer of an AI-powered app designed to extend buyer engagement with eating places, raised $14.5 million in Collection A funding. Runa Capital led the spherical and was joined by Volition Capital, Precursor Ventures, and others.
– W, a Miami, Fla.-based males’s private care model, raised $14 million in funding from Anti Fund, Vary Group, 305 Ventures, Uphonest Capital, Quiet Capital, and others.
– deepc, a Munich, Germany-based AI platform for radiology, raised $13 million in a Collection A extension. Sofinnova Companions and Bertelsmann Investments led the spherical and had been joined by KHP Ventures, SwissHealth Ventures, and current investor Successful Mindset Ventures.
– Star Catcher Industries, a Jacksonville, Fla.-based developer of orbital vitality infrastructure for satellites, raised $12.3 million in seed funding. Initialized Capital and B Capital led the spherical and had been joined by Rogue VC.
– rift, a San Francisco-based gross sales administration and automation platform, raised $5 million in seed funding. Sequoia Capital led the spherical and was joined by Y Combinator, Soma Capital, and angel traders.
– TeachMe.To, a San Diego, Calif.-based platform for reserving native in-person classes, raised $5 million in seed funding. Bling Capital led the spherical and was joined by Market Capital, 20Growth, Gokul Rajaram, and others.
– ShiftRx, an Austin, Texas-based healthcare staffing platform, raised $3.5 million in seed funding. Work-Bench led the spherical and was joined by Inflect Well being, Tau, and Opal Ventures.
– Jarvis, a London, U.Ok.-based app designed for retirement planning, raised £1.8 million ($2.3 million) in seed funding. Ascension VC and Cornerstone VC led the spherical and had been joined by Tokio Marine Future Fund.
PRIVATE EQUITY
– KKR agreed to take Instructure (NYSE: INST), a Salt Lake Metropolis, Utah.-based schooling expertise supplier, personal for about $4.8 billion.
– American Industrial Companions agreed to amass the grain and protein enterprise of AGCO Company, a Duluth, G.A.-based agricultural equipment and expertise firm, for $700 million.
– Accel-KKR acquired a majority stake in INX Software program, a Perth, Australia-based supplier of compliance, workforce administration, coaching, and reporting software program. Monetary phrases weren’t disclosed.
– FreshEdge, backed by Wind Level Companions, acquired Frontier Produce, a Tulsa and Oklahoma Metropolis, Oklahoma-based fruit and veggies distributor. Monetary phrases weren’t disclosed.
– One Fairness Companions agreed to amass a majority stake in Comau, a Grugliasco, Italy-based developer of commercial automation and robotics. Monetary phrases weren’t disclosed.
– TSG Client Companions acquired a majority stake in Summer time Fridays, a Los Angeles, Calif.-based skincare and hybrid make-up model. Monetary phrases weren’t disclosed.
EXITS
– AEA Buyers acquired Nations Roof, a Cell, Alabama-based business roofing firm, from Acacia Companions. Monetary phrases weren’t disclosed.
– KKR acquired Marmic Hearth & Security, a Joplin, Mo.-based inspector and supplier of upkeep companies for hearth safety gear, from HGGC. Monetary phrases had been nor disclosed.
– TDL Gentek acquired Microcel, a Newmarket, Ontario-based supplier of distribution, warehouse, and gross sales companies, from Atar Capital. Monetary phrases weren’t disclosed.
OTHER
– Agilent Applied sciences (NYSE: A) acquired BIOVECTRA, a Charlottetown, Canada-based contract growth and manufacturing group, for $925 million.
– Bone Well being Applied sciences acquired Wellen, a Brooklyn, N.Y.-based developer of train packages for ladies with osteopenia & osteoporosis. Monetary phrases weren’t disclosed.
– Lucid Bots acquired Avianna, a Lisle, IL.-based supplier of AI expertise designed to assist robots act autonomously. Monetary phrases weren’t disclosed.
IPOS
– Concentra, an Addison, Texas-based supplier of occupational well being companies, raised $529 million in an providing of twenty-two.5 million shares priced at $23.50 on the New York Inventory Trade. The corporate posted $1.8 billion in income for the yr ending March 31, 2024.
PEOPLE
– Angeles Fairness Companions, a Los Angeles, Calif.-based personal fairness agency, employed Peter Kurto as an working associate. Previously, he was with Monomoy Capital Companions.
