Repeat for annoyance value14 Jun 2020 19:31
I'm repeating this because I like it. Please skip it if you don't like it. I'm feeling very positive with a can of beer in the sunshine....
This is from the poster on advfn. I don't know him from Adam and was skeptical myself. But the CEO said YES when asked by the lady asking questions about sequoia.
I guess its about individuals interpretation and doing your own research.
From johnnyb....
Ok. Please let me clarify. I apologise if this comes across as patronising to any reader, I would just like this to be clear to everyone.
- Geography: In the USA, for Tech investments, think West Coast (California) as VC territory, think East Coast (NYC) as Institutional Money and Equity Markets.
- Tech startups are predominantly funded out of the West Coast, with the ambition of being publicly listed on the East Coast.
- Sequoia Capital is a VC (Venture Capital) only fund legal structure. It cannot invest directly in publicly traded companies.
- A VC’s aim is to invest rounds of capital into a startup until it is mature enough to be IPO’d or Sold to a Corporate.
- Sequoia Fund is the other end of the spectrum. It is a long only, public equity fund. In this case, run by some of the most respected fund managers in the USA on the Berkshire Hathaway model (not surprising as Warren Buffet, Charlie Munger and Bill Ruane are old friends and co-investors. Greg Alexander has been mentored by these boys as the heir to the throne).
The two holding structures (each structure has multiple funds within, so it’s a bit misleading to say ‘this fund’ or ‘that fund’) have a long history in tech investment, with many of the startups identified and grown by Sequoia Capital, finding their way into Sequoia Fund, amongst others.
In the case of Avacta, investment can only be made via Sequoia Fund. However, the sources of capital that invest into both of these structure and the people who manage them are the same.
The US tech investment ecosystem is very incestious, especially at the top end of the market where the Whales live...and Sequoia Capital and Fund are two of the oldest, biggest and most respected.
If one chooses to believe these structures and managers do not collaborate, then one chooses not to recognise how the US tech investment community operates. This ‘old school network’ is how they rarely lose.
I see nothing but positives for Avacta. Good luck.
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