Sequoia Capital just blew up the VC fund model

What a bunch of hyperbole. Sequoia, like the rest of the industry, is playing catch-up to the model that SoftBank mastered. That record profit earlier this year was insane.

Masa-son is a lot smarter than the press makes him out to be; you really gotta wonder if he would be treated the same way if he wasn’t a Korean guy from Japan. Just imagine if he was some born-on-third-base blue-blood who wore blue button-downs and chinos and walked to work from his Professorville home in Palo Alto...

I’m very uninformed when it comes to the inner finance workings of these deals, so please pardon my ignorance on this, but simmering caught my eye here as a potential risk: the idea of combining all these funds and investment “sub-companies” together.

Assuming I read this right (which I concede may be an erroneous assumption), wouldn’t that essentially tear down any built in fire walls between failing investments and succeeding ones? Sure it’s all the same additive value more or less, but at least with an LLC owned by the main investment firm you can close it down if it’s independent investments don’t pan out and it winds up insolvent. And doing that wouldn’t cause any significant problems for your other subsidiaries since they’re separate legal entities, in spite of having the same owners.

I’m probably not understanding this right, so please help me see why, even though this sounds like “putting all your eggs in one basket” The risk described above either doesn’t matter it is worth it for the rewards (which would be…what exactly?).