Executing this 2 tranche deal without publicity and disclosing to all investors in docs is fine.
Publicly announcing "we raised $1B @ $5B from Sequoia" if it isn't true is securities fraud.
Brendan (can/do) (@BrendanFoody)
the “sequoia scam” is worse than a single horror story…
in the last 6 mo’s ive seen a half dozen rounds where sequoia invests in 2 tranches. everyone pretends they only did the higher valuation. founders misrepresent this to their employees & then shop it to angels too
sequoia’s blended price is blatantly deceptive - 50% of the one projected to the market 🤔
— https://nitter.net/BrendanFoody/status/2063470286515683759#m