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I don’t have all of the answers but my guess is they have something in their deal with one or both parties that doesn’t allow this. My guess is it is with Strip
by eightysixfour 7y ago
I don’t have all of the answers but my guess is they have something in their deal with one or both parties that doesn’t allow this. My guess is it is with Stripe and, after learning of the investment, Stripe immediately reached out with a “hey guys, WTF” email and this is Sequoia’s way of exiting the mistake quickly.
- filmgirlcw 7y agoThat’s my guess too. I’m guessing there was a provision attached to the Stripe investment precluding any investment in competitors. Sequoia may not have seen Finix at a competitor but Stripe did. And if that’s the situation, the startup shouldn’t have to suffer because the lead investor messed up. Pulling out but letting the startup keep the money and get the board seats back is really the only correct move.