MERCOR EXEC EXPOSES SEQUOIA'S DUAL-PRICING VALUATION

Foody's criticism highlights a valuation tactic where firms assign different prices to identical equity stakes depending on the investor or round structure. This allows ventures to inflate valuations on paper while managing actual shareholder returns. Sequoia is not alone in the practice—other prominent firms employ similar methods. The dual-pricing approach can benefit early investors through preferential terms while creating opaque cap tables that complicate future fundraising and exits. The disclosure adds pressure on the venture industry to standardize valuation practices. As startups and limited partners increasingly scrutinize deal terms, firms face growing calls for transparency in equity pricing mechanisms. Foody's public statement signals mounting frustration within the startup ecosystem over valuation gamesmanship that obscures true company worth and investor returns.