Mercor’s Brendan Foody calls out Sequoia over ‘dual-pricing’ valuation tricks (opens original article in a new tab)

Brendan Foody of Mercor accused Sequoia of using dual-pricing in venture capital rounds, where the firm invests in two tranches at different valuations, creating a misleading headline valuation. Sequoia's Shaun Maguire defended the practice as a market reality, not a scam, while others noted similar tactics by other firms.

• Brendan Foody accused Sequoia of dual-pricing in venture capital rounds with different valuations for tranches.
• Sequoia's Shaun Maguire called the practice a market reality, not a scam, and noted it happens infrequently.
• Other firms also use similar tactics, and dual-pricing can mislead employees and angel investors about a startup's true valuation.