Mercor’s Brendan Foody calls out Sequoia over ‘dual-pricing’ valuation tricks
Sequoia is just one of the top firms that sells same equity at two different prices.
Sequoia is just one of the top firms that sells same equity at two different prices. This report comes from TechCrunch. The story centres on Mercor’s
Read Full Story at TechCrunch →Why This Matters
The dispute between Mercor’s Brendan Foody and Sequoia over "dual-pricing" valuation tactics underscores a growing tension in venture capital between transparency and profit-driven strategies. Beyond the immediate conflict, this case could redefine investor expectations in private markets, where asymmetrical pricing often goes unchallenged. Investors, founders, and regulators are now forced to confront whether such practices distort fair valuation—or if they’re simply an accepted cost of doing business in high-stakes dealmaking.
Background Context
Dual-pricing in venture capital, where firms assign different valuations to the same equity stake depending on investor type or timing, has long been a behind-the-scenes tool for firms like Sequoia. The practice gained traction during the 2020-2021 SPAC boom, when inflated pre-money valuations allowed firms to attract late-stage capital while quietly marking down portfolios in internal reports. Unlike public markets, private valuations operate in a regulatory gray area, where discrepancies can persist for years without scrutiny from outsiders.
What Happens Next
If regulators or limited partners push for greater disclosure, firms may need to adopt more uniform valuation methodologies—potentially tightening liquidity in down rounds or IPO windows. The fallout could also accelerate a shift toward secondary market pricing, where third-party assessments might replace firm-led valuations. Alternatively, if the industry rallies to defend dual-pricing as a necessary tool, the backlash could deepen divisions between traditional VC powerhouses and emerging funds prioritizing transparency.
Bigger Picture
This controversy reflects a broader reckoning in venture capital, where the era of unchecked growth-at-all-costs is colliding with demands for accountability. As private markets mature, firms that once operated with near-total discretion now face pressure from founders, employees, and even retail investors questioning the fairness of their deal structures. The debate over dual-pricing is just one symptom of a larger shift toward redefining what "fair value" means in an industry where information asymmetry has long been a competitive advantage.
