Sequoia unveils $950M in new early-stage funds as it strives to be ‘only as good as our next investment’

Core Insights - Sequoia Capital maintains a consistent investment strategy focused on identifying outlier founders despite market fluctuations and the current AI bubble [1][4] - The firm has launched two new funds: a $750 million early-stage fund for Series A startups and a $200 million seed fund, reflecting its commitment to early-stage investments [2][4] - Sequoia aims to leverage its early-stage focus to secure lower valuations and significant ownership stakes in promising AI startups [5][6] Investment Strategy - The firm emphasizes investing in founders at the earliest stages, which is crucial given the rapid increase in startup valuations [5][6] - Sequoia's recent investments in companies like Clay, Harvey, n8n, Sierra, and Temporal have seen substantial appreciation amid the AI boom [5] - The firm has also made early investments in security tester Xbow, AI reliability engineer Traversal, and DeepSeek alternative Reflection AI, which have attracted significant capital at higher valuations [6] Historical Context - Sequoia underwent a structural overhaul in 2021 to create an evergreen main fund supported by strategy-specific sub-funds, allowing for long-term retention of stock in portfolio companies [3] - The firm faced a significant financial setback in late 2022 due to its investment in FTX, losing over $200 million [3] - Despite recent challenges, Sequoia is refocusing on its core mission of supporting promising founders [4][7] Legacy and Culture - Sequoia is committed to upholding its legacy as a top investor in Silicon Valley, with a renewed emphasis on the importance of each investment [7]