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Meet Sequoia Capital’s new stewards

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Lin—famed as the thoughtful backer of companies like DoorDash, Airbnb, and Citadel Securities—said something I’ve thought about many times since: That it’s important to be able to hold ideas in “extreme tension,” because that’s, in effect, the only path to truth, to knowing what your options truly are.

“The thing about holding things in tension, in extreme tension, is that the right answer is almost definitely somewhere in the middle,” Lin told me in an interview in 2024 about how he thinks about founders. “If you start in the middle and radiate out from there, you think ‘Oh, this is obvious, it makes sense.’ Then you limit the number of solutions you look at. If you look at the extreme and work towards the center, you traverse almost every single possibility. That’s why when people hold things in tension, they tend to come up with more options.”

Lin has long been regarded as the best of the best among Silicon Valley VCs, and yesterday he came to the fore in a way I consider (yes, in somewhat contradictory terms) surprising but inevitable: Sequoia announced that Roelof Botha would step down as the firm’s steward, and that Lin and Sequoia partner Pat Grady would take up the mantle as co-stewards. 

Now, this is surprising on some level: Botha is only 52, and the YouTube and Instagram investor has been leading Sequoia for nearly a decade (he’s been on his own as sole steward since 2022). At the same time, there’s a layer of inevitability: Sequoia has conducted generational transfers five times over its 53 years, has previously had co-stewards more often than not, and Grady and Lin are both uniquely suited to the task.

While Lin has led the firm’s early stage investing since 2017, Grady has steered Sequoia’s growth stage investing practice since 2015, leading deals in Snowflake, Zoom, ServiceNow, Harvey, and OpenEvidence. Both have longstanding reputations as excellent investors, proven over time in a business that even at its very best can be fickle. Lin is also on the board of Kalshi, and both led Sequoia’s investments in OpenAI. 

If you aren’t familiar with Lin and Grady, some facts and throughlines: Lin’s early career was defined by his time as chairman, COO, and CFO at Zappos up until its blockbuster acquisition by Amazon. Meanwhile, Grady, the younger of the two, started his career at Summit Partners, landing at Sequoia in 2007. (Lin would join the firm in 2010.) Their backstories have some parallels, as both have personal histories that start far from the top of Silicon Valley: Lin’s parents immigrated from Taiwan when he was a kid, and Grady grew up in a Wyoming coal mining region. 

Sequoia has its own contradictions to contend with moving forward—despite its more than $50 billion in assets under management, Sequoia’s long said it remains focused on generating best-in-class returns, and embodying the kind of excellence that implies in an unstable, long-game industry. (Sequoia has a little more than 20 investors, a number that’s remained consistent over time.)

This also happens at a moment where the venture capital goalposts are moving—the industry is bifurcating into asset managers and smaller shops, while politics is becoming an increasingly complicated flashpoint. Some firms, like a16z, have leaned into it, while others have tried to stay away from political issues entirely. Sequoia has kept to a philosophical middle path, maintaining the firm’s “institutional neutrality” while allowing partners to be personally vocal about politics. (There’s history here: Famously, Moritz was a vocal Democrat; Leone was prominently Republican.) That worked for years, but there’s evidence of cracks in that approach.

As Lin and Grady take the wheel—becoming the people who now tend to the most famous tree in venture capital—it’s a time of extremes and contradictions. As they look to keep Sequoia at the top of the startup investing game, they’ll have to consider those extremes and, in doing so, perhaps find the best possible vision for the future of venture capital.  

Term Sheet Podcast…This week, I talked to Cityblock Health cofounder and CEO Dr. Toyin Ajayi. A former physician, Ajayi saw how the system can sometimes work against patients, driving burnout and increasing costs. In 2017, she cofounded Cityblock Health, a tech-forward health care startup that provides care to underserved communities. We talked about doctors as entrepreneurs, health care reform, and AI. Listen and watch here. 

See you tomorrow,

Allie Garfinkle
X:
@agarfinks
Email: alexandra.garfinkle@fortune.com
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Allie Garfinkle curated the deals section of today’s newsletter. Subscribe here.

Venture Deals

Beacon Software, a Toronto-based company that acquires software businesses, has raised a $250 million Series B. General Catalyst, Lightspeed, and D1 Capital led the round. 

Parable, a New York-based AI impact measurement startup, has raised $16.5 million in seed funding. HOF Capital led the round, joined by Story Ventures, InMotion Ventures, Lasagna, Panache, Supercharge, and Tripe Impact Capital. 

Other

Arctic Wolf announced plans to acquire ransomware detection company UpSight Security. Financial terms were not disclosed.

This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers in venture capital and private equity. Sign up for free.



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The day the crosswalk music died: Iconic Buddy Holly Glasses to be lifted from hometown crosswalk on Trump directive

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Fans of the Buddy Holly crosswalk in his hometown of Lubbock, Texas, with a painted depiction of the rock and roll legend’s iconic glasses, will soon have to say goodbye to it. That’ll be a day that will possibly make them cry.

Lubbock City Council members said this week they have no choice but to remove it, to comply with a directive from the Trump administration and Republicans to rid the public roadways of any political messages or artwork.

Laredo, in South Texas, removed a mural in October that protested the border wall along the southern border with Mexico. In August, Florida officials removed a rainbow-colored crosswalk outside the Pulse nightclub where 49 people were gunned down.

Lubbock’s crosswalk was first installed in 2020 and is near the Buddy Holly Center, a downtown museum with exhibits honoring Lubbock’s most famous native son.

“It’s such a tasteful cross section and people like it. But what do you do?” said City Council Member Christy Martinez-Garcia, who was among those questioning why it had to go.

Lubbock received a letter from the Texas Department of Transportation with “some harsh wording” that threatened the possible loss of state or federal funding for road projects if such artwork was not removed, David Bragg, Lubbock’s interim division director of public works, told council members on Tuesday.

“This was very broad letter. I don’t think it was intended to go after, say, the Buddy Holly glasses. Unfortunately it did,” Bragg said.

Mayor Mark McBrayer said the city had no choice but to comply.

“Probably everybody here got some communication from people wanting that not to be the case,” McBrayer said. “But I don’t really feel like we have the wherewithal to do anything about that without trying to litigate it and I don’t think there’s any appetite here anyway.” Bragg said the removal will happen during normal maintenance next year.

On Oct. 8, Abbott directed the department to ensure that all Texas cities and counties are in compliance with federal and state guidelines on roadway safety and that symbols, flags and other markings conveying social or political messages are prohibited, as well as any signage and signals that don’t directly support traffic control or safety.

“Texans expect their taxpayer dollars to be used wisely, not advance political agendas on Texas roadways,” Abbott said in a statement.

Abbott’s office did not immediately respond to an email seeking comment on Friday.

Abbott’s directive came after Trump’s Transportation Secretary Sean P. Duffy sent letters to all U.S. governors in July saying that intersections and crosswalks must be kept free from distractions.

“Roads are for safety, not political messages or artwork,” Duffy’s statement said.

Holly was born and raised in Lubbock, located in northwest Texas. He decided to play rock and roll music after seeing Elvis Presley perform in 1955. His best known songs include “That’ll Be the Day,” ’’Rave On” and “ Peggy Sue.”

Holly was only 22 when he died in a Feb. 3, 1959, plane crash near Clear Lake, Iowa, that also killed Ritchie Valens and J.P. “Big Bopper” Richardson. The three rockers’ deaths were immortalized in Don McLean’s 1971 song “American Pie,” and became known as “the day the music died.”



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Despite AI bubble fears, Warren Buffett’s Berkshire Hathaway buys shares of hyperscaler Alphabet

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Wall Street has been consumed for months with fears that the artificial intelligence boom is actually a bubble about to pop, but that didn’t stop Berkshire Hathaway from buying shares of a top AI hyperscaler.

Warren Buffett’s conglomerate revealed in a regulatory filing late Friday that it purchased 17.8 million shares of Google parent Alphabet during the third quarter. The stock jumped 4% in after-hours trading yesterday.

It was the biggest stock addition last quarter and was worth about $4.3 billion at the end of September. Berkshire also bought shares of Chubb, Domino’s Pizza, Sirius XM and Lennar.

Meanwhile, Berkshire maintained its position in Amazon, another AI hyperscaler, in the third quarter.

The addition of Alphabet comes amid a massive rally. Even after the most recent AI-fueled stock market selloff, Alphabet shares are still up 46% this year.

To be sure, Alphabet has been on Berkshire’s radar in the past. In 2019, Buffett’s right-hand man at the time, the late Charlie Munger, admitted that he felt “like a horse’s ass for not identifying Google better. I think Warren feels the same way.”

Back then, Google’s dominance in search piqued Berkshire’s interest. But today, the company is among the tech giants leading the charge into AI.

Alphabet, Amazon, Meta Platforms and Microsoft alone are spending hundreds of billions of dollars a year with no signs of a slowdown.

Morgan Stanley has estimated AI hyperscalers plan to spend about $3 trillion on data centers and other infrastructure through 2028.

The relentless capital expenditures, much of which is coming via debt, have made Wall Street nervous about whether AI companies will be able to translate all those outlays into sustainable revenue and profits.

With Buffett due to step down as Berkshire’s CEO by year’s end, it’s not immediately clear whether he, successor Greg Abel, or another top executive made the call to buy Alphabet stock.

And investors may not hear directly from the “Oracle of Omaha” on the matter. In a letter published Monday, Buffett said he’ll be “going quiet,” and will no longer write Berkshire’s annual report, nor talk “endlessly” at the annual meeting.

Leading up to Buffett’s departure, Berkshire has been taking a cautious stance on the stock market as well as company acquisitions, sending its cash pile to record highs.

Buffett’s closely followed stock portfolio continued to shrink overall, as last quarter marked three straight years of net selling. The most recent round of selling included more shares of Apple, which Berkshire has been steadily offloading for more than a year.



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Trump, who mocked Biden’s use of autopen, caught posting identical signatures on pardons

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The Justice Department posted pardons online bearing identical copies of President Donald Trump’s signature before quietly correcting them this week after what the agency called a “technical error.”

The replacements came after online commenters seized on striking similarities in the president’s signature across a series of pardons dated Nov. 7, including those granted to former New York Mets player Darryl Strawberry, former Tennessee House speaker Glen Casada and former New York police sergeant Michael McMahon. In fact, the signatures on several pardons initially uploaded to the Justice Department’s website were identical, two forensic document experts confirmed to The Associated Press.

Within hours of the online speculation, the administration replaced copies of the pardons with new ones that did not feature identical signatures. It insisted Trump, who mercilessly mocked his predecessor’s use of an autopen, had originally signed all the Nov. 7 pardons himself and blamed “technical” and staffing issues for the error, which has no bearing on the validity of the clemency actions.

The questions about Trump’s signature come amid a new flurry of clemency and weeks after the president claimed to not even know Changpeng Zhao, a crypto billionaire he pardoned last month. He said in an interview with 60 Minutes that the case had been “a Biden witch hunt.”

“A basic axiom of handwriting identification science is that no two signatures are going to bear the exact same design features in every aspect,” said Tom Vastrick, a Florida-based handwriting expert who is president of the American Society of Questioned Document Examiners.

“It’s very straightforward,” said Vastrick, who compared the apparently identical images, now only visible through the online Internet Archive, with the replacements at AP’s request.

Chad Gilmartin, a Justice Department spokesperson, said the “website was updated after a technical error where one of the signatures President Trump personally signed was mistakenly uploaded multiple times due to staffing issues caused by the Democrat shutdown.”

“There is no story here other than the fact that President Trump signed seven pardons by hand and DOJ posted those same seven pardons with seven unique signatures to our website,” Gilmartin said in a statement to AP, referring to the latest wave of clemency Trump has granted in recent weeks.

White House spokesperson Abigail Jackson wrote in an email that Trump “signed each one of these pardons by hand as he does with all pardons.”

“The media should spend their time investigating Joe Biden’s countless auto penned pardons, not covering a non-story,” she wrote.

Trump has been an outspoken critic of Biden’s use of the autopen to conduct executive business, going as far as to display a picture of one such device in place of a portrait of his predecessor in a new “Presidential Walk of Fame” he created along the West Wing colonnade. His Republican allies in Congress last month released a blistering critique of Biden’s alleged “diminished faculties” and mental state during his term that ranked the Democrat’s use of the autopen among “the greatest scandals in U.S. history.”

The Republicans said their findings cast doubt on all of Biden’s actions in office and sent a letter to Attorney General Pam Bondi urging a full investigation.

“Senior White House officials did not know who operated the autopen and its use was not sufficiently controlled or documented to prevent abuse,” the House Oversight Committee found. “The Committee deems void all executive actions signed by the autopen without proper, corresponding, contemporaneous, written approval traceable to the president’s own consent.”

On Friday, Republicans who control the committee released a statement that characterized Trump’s potential use of an electronic signature as legitimate, which it distinguished from Biden’s.

But Rep. Dave Min, a California Democrat on the House Oversight Committee, seized on the apparent similarities in the initial version of the pardons and called for an investigation of the matter, deploying the Republican arguments against Biden in a statement to AP that “we need to better understand who is actually in charge of the White House, because Trump seems to be slipping.”

Regardless, legal experts say the use of an autopen has no bearing on the validity of the pardons.

“The key to pardon validity is whether the president intended to grant the pardon,” said Frank Bowman, a legal historian and professor emeritus at the University of Missouri School of Law who is writing a book on pardons. “Any re-signing is an obvious, and rather silly, effort to avoid comparison to Biden.”

Much of Trump’s mercy has gone to political allies, campaign donors and fraudsters who claimed they were victims of a “weaponized” Justice Department. Trump has largely cast aside a process that historically has been overseen by nonpolitical personnel at the Justice Department.

Casada, a disgraced former Republican speaker of the Tennessee House, was sentenced in September to three years in prison. He was convicted of working with a former legislative aide to win taxpayer-funded mail business from state lawmakers who previously drove Casada from office amid a sexting scandal.

Strawberry was convicted in the 1990s of tax evasion and drug charges. Trump cited the 1983 National League Rookie of the Year’s post-career embrace of his Christian faith and longtime sobriety when pardoning him.

McMahon, a former New York City police sergeant, was sentenced this spring to 18 months in prison for his role in what a federal judge called “a campaign of transnational repression.” He was convicted of acting as a foreign agent for China after he tried to scare an ex-official into going back to his homeland.

McMahon’s defense attorney, Lawrence Lustberg, said he was not aware the pardon documents had been replaced until he was contacted Friday by an AP reporter.

“It is and has always been our understanding that President Trump granted Mr. McMahon his pardon,” Lustberg wrote in an email.

___

Mustian reported from Natchitoches, Louisiana. AP reporter Eric Tucker contributed reporting from Washington.



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