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 $100 million in value monthly, establishing what the author describes as a record rate of equity value creation. The article highlights Sequoia's reputation for aggressive, successful investments across multiple market cycles.
Metrics in this report
1.65B$
YouTube acquisition
Google acquisition of YouTube, October 2006
3.5M$
Series A funding
Sequoia Capital's initial investment in YouTube
100M$
slightly less than
YouTube equity value creation per month (18-month period)
1.5B$
approximately
Sequoia-backed PayPal acquisition during 2002 Internet bust
30%
estimated
Sequoia Capital ownership in YouTube
495M$
based on acquisition price
Value of Sequoia's 30% YouTube stake