The Dual-Pricing Term Sheet Sequoia Is Being Accused Of

Episode notes

This week on The Venture Capital Podcast, Lucas and Luna dig into the explosive accusation against Sequoia Capital: that it's using a 'dual-pricing' strategy in term sheets — offering different valuations to different investors in the same round. With Mercor's CEO Brendan Foody going public with the claim, the hosts examine how this practice works, why it's controversial, and what it signals about power dynamics in venture. They anchor the conversation in the current market landscape, referencing the recent tech sell-off that has hit high-growth names like Palantir and Coinbase hard—down over 10% and 6% respectively in the last five days. They also look at Zepto's IPO filing, which reveals growing losses and a valuation that's hard to pin down. Lucas walks through the mechanics of dual-pricing, including how it can create misaligned incentives between investors and founders. Luna challenges whether it's always bad or just a negotiation tactic. The episode closes on what this means for founders negotiating their next round in a market that's simultaneously frothy in AI and choppy for everyone else.