Sequoia's Pat Grady shares LP meeting: AI startup valuations jump from $110M to $3.4B in a month
multiply_matrix · x · 2026-09-27
Sequoia partner Pat Grady publicly shared a recording of his LP meeting with Boston College, packed with data:
- JEV's explosive growth: from $0 to $100M revenue in 7 days; The Information recently reported a $10B valuation. Instinct has sustained 10% day-over-day growth since launch.
- He calls it a bubble: internal Sequoia data across 7 cases over the past 12 months shows Sequoia entering as the "company-building" investor at an average post-money of $110M, only for money-only investors to price the next round at an average $3.4B a month later. Back-to-back rounds splitting builders from financiers are now a norm.
- Enterprises want to own their intelligence: labs only offer a few points on the Pareto frontier, so companies train and deploy their own optimized models; specialized-architecture labs are beating general ones.
- Application-layer companies must reinvent themselves every 4 months as the model floor keeps rising.
- Org structure is shifting from hierarchy and command-and-control toward a network of agents.
Related event: Sequoia Partner Shares AI Landscape Notes with LPs(3 posts)→
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