Startup investors that held off on exiting investments after their initial public offerings are left to rue the decision
announced a new longer-term fund structure in the fall of 2021 that would allow it to hold shares in public companies indefinitely, arguing that it could. In addition to holding on to stock, the firm has purchased new shares in public companies including software provider Datadog Inc., public filings show, part of a broader trend among Silicon Valley investors.
Some venture firms haven’t just seen paper gains shrink, they actually lost money outright by hanging on to shares—a rarity for such investors given how early they initially acquire stakes in startups.Robinhood Marketsbeginning in 2018, according to calculations by the Journal and people familiar with the matter. The firm’s stake was worth around $175 million as of Wednesday’s market close, the Journal calculations show, translating into an $83 million loss for the firm.
Sequoia, among the most vocal venture-capital proponents of the new strategy of holding public stocks, also missed out on billions of dollars in potential gains for some of its largest stock positions, including software providerSequoia still owns the majority of its IPO shares in Snowflake, which went public more than two years ago, public filings show. Snowflake’s stock has lost roughly 65% from its post-IPO high.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gatlin’s BBQ executive chef leaves to plot new solo ventureAfter six years with Gatlin’s, chef Michelle Wallace plans her own sandwich restaurant...
Read more »
Exclusive: Nexus Venture eyes $700 million fund to bet on India, U.S. tech startupsIndia's Nexus Venture Partners is in advanced talks to raise a $700 million fund, the second-biggest such pool to be garnered in the country in the past year, to invest in domestic and U.S.-based technology firms, two sources with direct knowledge said.
Read more »
Southern Arizona Cat Rescue honors Hunter the cat through a new business ventureHunter's Kitten Lounge hopes to get cats out of shelters and into forever homes. Southern Arizona Cat Rescue (SACR) is saving lives, one paw at a time.
Read more »
Rio Tinto, Baowu take next step towards developing Guinea joint ventureRio Tinto’s Guinea unit has agreed on terms with joint venture partners including China’s Baowu on developing infrastructure for the huge Simandou iron ore mine.
Read more »
Coworking space provider Venture X expands in San Antonio with Northwest Side locationThe new space includes meeting rooms, a mail and print center, security systems, high-speed internet, parking, and access to a gym and cafe.
Read more »
France urges energy firms to help bakers with soaring billsEnergy suppliers are not doing enough to help France's trademark bakeries cope with soaring energy bills, Finance Minister Bruno Le Maire said on Tuesday.
Read more »