Mercor co-founder accuses Sequoia of dual-pricing valuation scheme

Brendan Foody publicly accused Sequoia Capital of selling identical equity at different prices across separate tranches to artificially inflate headline valuations. The practice allows lower-priced transactions within separate vehicles to obscure the actual market-clearing price. Sequoia has not publicly responded. The allegation raises questions about fair value marking across the current AI investment cycle, where cap table complexity and multi-tranche structures create opportunities for price signals to diverge from economic reality.