American venture capital firm Sequoia Capital is in early discussions to raise a total sum of $5 billion venture fund to invest exclusively in technology firms that are in its portfolio.
To Capitalize on Tech Companies
Sequoia Capital is hoping to gain by tech organizations remaining private longer. Notwithstanding financing organizations specifically, the firm is hoping to gather bigger stakes in its picked new businesses by purchasing property from business people and early representatives. This is a tactic frequently used by SoftBank Group Corp.
Changing the power dynamic in a company
Investments from the Softbank often changes the power dynamic in a company, said TrueBridge Capital co-founder Edwin Poston, an investor in Sequoia Capital, Accel, Andreessen Horowitz and Peter Thiel’s Founders Fund. But many entrepreneurs can’t resist an approach by SoftBank because it generally comes at a high share price, he said.