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The Risks of Being an Evergreen Fund
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23:26 - 24:24 (00:58)

VC firms like Sequoia have started transitioning into Evergreen Funds, which means park and hold money for their limited partners. However, this strategy can get out of control quickly especially during a market downturn since there's a revolving liquidity mechanism for their LPs, leading to borrowing or liquidating some positions, which should not happen.

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