Kellblog · 2006-10-09 · 7178d

Sequoia Capital's YouTube Acquisition: $1.65B Exit and Record Value Creation

Google's acquisition of YouTube for $1.65 billion represents a landmark investment success for Sequoia Capital, which held approximately 30% equity stake worth ~$495 million. The 18-month-old company created nearly $100 million in value monthly, establishing what the author describes as a record rate of equity value creation. The article highlights Sequoia's reputation for aggressive, successful investments across multiple market cycles.

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Metrics in this report

Acquisition Price

1.65B$

YouTube acquisition

Google acquisition of YouTube, October 2006

Initial Sequoia Investment

3.5M$

Series A funding

Sequoia Capital's initial investment in YouTube

Monthly Value Creation Rate

100M$

slightly less than

YouTube equity value creation per month (18-month period)

PayPal Exit Value

1.5B$

approximately

Sequoia-backed PayPal acquisition during 2002 Internet bust

Sequoia Equity Stake

30%

estimated

Sequoia Capital ownership in YouTube

Sequoia Stake Value

495M$

based on acquisition price

Value of Sequoia's 30% YouTube stake