Sequoia accused of inflating AI startup valuations through separate pricing tiers

Brendan Foody, co-founder of Mercor, publicly accused Sequoia Capital of selling the same equity at different prices across separate funding rounds to artificially inflate headline valuations. The practice obscures the true market price investors are willing to pay. Sequoia has not responded. The allegation raises questions about honest valuation practices in the AI investment boom, where complex deal structures can mask real economic value.