Sequoia Capital's Twitter introduction: Help the fearless to create DAOs! From ideas to airdrop tokens

Silicon Valley venture capital giant Sequoia Capital (Sequoia Capital) changed its Twitter profile yesterday (8) as: We help the fearless to create legendary DAOs, from creative ideas to token airdrops. Let’s move forward together (Let’s fucking go, LFG)". Prior to this, Sequoia Capital’s previous introduction was:

Original: We help the daring build legendary companies from idea to IPO and beyond.

Update: We help the daring buidl legendary DAOs from idea to token airdrops.LFG

The obvious change is that we can see it from: build>>buidl, Companies>>DAOs, and IPO>>token airdrops; Build is a variant of the word build, which is used to call on people to build and be willing to actively contribute to build more A complete cryptocurrency ecosystem, not just passive holding.

The latter change is enough to see that the company has the courage to challenge and innovate: actively exploring the DAO that may be a new type of enterprise and equity in the future.

Since the beginning of this year, Sequoia Capital has participated in FTX's B round of financing, decentralized community blockchain DeSo financing... etc. "The Information" also previously reported that about a quarter of Sequoia Capital's investment this year is related to the cryptocurrency industry.

What is DAO

DAO (Decentralized Autonomous Organization) Chinese translation is a decentralized autonomous organization, which is an organizational structure developed based on blockchain technology. DAO does not have a centralized leader, but writes organizational rules into programs, which are executed by smart contracts, and are jointly governed by members of the organization.

One of the great advantages of DAO is that it may solve the problem of delegation and agency. That is, shareholders entrust the company's management rights to the company's senior executives, hoping to create the greatest benefits for shareholders; however, as long as the power is concentrated, there is a possibility of corruption.

In a DAO, participants are rewarded in the form of native tokens to help them work for a common goal and minimize the possibility of corruption. Many commentators believe that DAO may become a new type of enterprise in the future state.

Abandon the traditional venture capital model and set up Sequoia Fund

According to previous reports, Sequoia Capital issued a statement in late October stating that our industry is still subject to the rigid 10-year fund cycle created in the 1970s. With chips getting smaller and smaller and software flying to the cloud, venture capital still operates like a disk.

Therefore, it decided to reshape its investment structure in the United States and Europe and established the Red Shirt Fund (The Sequoia Fund), which will raise funds from limited partners and then transfer these funds to a series of smaller closed-end sub-funds , Used for venture capital at every stage from establishment to initial public offering (IPO).

Regarding the advantages of this fund, Sequoia Capital stated: The returns from these venture investments will flow back to Sequoia Fund through continuous feedback loops, and the investment will no longer have a maturity date. Sequoia’s only focus will be long-term Sequoia's companies and limited partners create value.

Sequoia Capital pointed out: This new structure will eliminate all artificial restrictions on the length of time we can cooperate with the company, and enable us to participate in their board of directors, helping them realize their potential in decades and invest with us The long-term cooperation of the legendary company will become the characteristic of Sequoia.

In addition, Sequoia Capital also announced that it will become a Registered Investment Advisor (RIA) and will be able to expand Sequoia’s flexibility to support its investments through various financing activities, such as secondary markets or IPOs. Portfolio; and can further increase investment in emerging asset classes, such as cryptocurrency, seed investment projects... etc.