A number of posts have tried to figure out how much Sequoia is taking down in the Google/Youtube deal. The figure is pegged at $450 million or so based on the thinking that Sequoia has 1/3 of the company, having invested a total of $11.5 million in two rounds, the first coming in November of 2005, nine months after Youtube’s founding in February of that same year.
How did they get access to the deal? Network. A partner at Sequoia had known the two founders at Paypal and took the plunge — twice in both rounds without balancing their risk with another VC. Gutsy and admirable. Entrepreneurs love it when their backers as are excited as they are about the investment.
On the sale, Sequoia’s network was at work again. Sequoia is also on Google’s board, no doubt reducing fear around the copyright issues.
Sequoia clearly deserves every dime.