Zappos is the first big win for Sequoia Capital’s eleventh fund, and it won’t likely be the last.
The firm’s $425 million, 2003 vintage fund caught startups in a weird time — after the dotcom bust but before Web 2.0 kicked into high gear. It invested in dotcom survivors like Zappos and eHarmony, as well as companies that presaged Web 2.0, like LinkedIn and Kayak.com.
The firm used the dotcom downturn to its advantage, picking up enviable stakes in attractive companies.
Though six years into the fund’s life, however, Sequoia has yet to reap many of the rewards of its investing. So far, Sequoia has sold eight of the 36 companies in its 11th fund, according to data from Thomson Reuters (plus some supplemental work by peHUB).