In the technology sector, Sequoia Capital has made some of the most strategic investments I have seen. Â The venture capital firm invested early inÂ Electronic Arts, Atari, Apple, YouTube, Google, Cisco, NVIDIA, LinkedIn, PayPal, and Oracle. Â
The rumor is that now Sequoia is planning to raise $750 million to start its own hedge fund. Â Companies that have hedge funds means that they select a limited number of investors and plug it into more complex and risky stocks than a public fund. Â Mutual funds, broker firms and other investors are regulated by U.S. security laws. Â Hedge fund owners typically collect commissions earned above initial investment.
The positive news about Sequoia raising additional funds to earn these commissions is that they’ll have additional venture capital money to plug into startups. Â Sequoia Capital was the first partner or venture capital investor to make up 10% of NASDAQ’s value.
Private Equity HUBÂ is reporting that Sequoia is searching for public equity investors for the market in India too. Â
Some of today’s Internet companies that Sequoia has invested in includes Adbrite, Atom Entertainment, CafePress, Eons, Funny or Die, Joost, Kayak.com, imeem, Meebo, Plaxo, RockYou, and Stardoll.