Question

Sequoia capital is a/an:

• A. Angel investor
• B. Venture capital firm
• C. Fintech Start‐up
• D. None of the above

Answer 1

The Correct Option is B

The question is asking about the classification of Sequoia Capital. Let's examine the options one by one:

1. Angel investor: Angel investors are individuals who provide capital for startups, usually in exchange for convertible debt or ownership equity. They typically invest in the early stages of a business. Sequoia Capital, however, is not an individual investor; it is an organization.
2. Venture capital firm: Venture capital firms, like Sequoia Capital, are companies that provide funding to start-ups and small businesses that are perceived to have long-term growth potential. They manage investment funds that invest in high-risk, high-reward businesses. Sequoia Capital is well-known as a leading global venture capital firm.
3. Fintech Start‐up: A fintech startup is a company that uses technology to provide financial services. Sequoia Capital does not itself offer financial services or operate as a startup; rather, it invests in other companies that may be fintechs.
4. None of the above: Since Sequoia Capital is a venture capital firm, this option is incorrect.

The correct answer is, therefore, Venture capital firm, as Sequoia Capital is globally recognized for investing in budding and emerging businesses, particularly in technology and innovation sectors.