Sequoia India promotes five to partnership 

VC investors have two forms of income- management fee- akin to salaries, and the money that a fund spends on day-to-day activities, administration and hiring. After a venture fund’s expenses, the remaining management fee is also distributed among partners. This will be a new benefit that the promoted principals will get.

Carry, however, is generally meant to be the biggest source of wealth for venture capitalists, earned when a company is sold or goes public.

“Today, we are excited to announce significant additions to our leadership team at Sequoia India, a move that underscores our commitment to serve founders better across stages and sectors. It also deepens our ability to partner with a growing number of high potential companies in the region,” Sequoia said.

All the new partners have been long-term Sequoia investors, and have grown from Associate, the entry-level full-time position at VC funds. Tejeshwi Sharma joined the firm in 2012, only leaving to invest with Chinese giant Tencent from 2017, a year after which he returned to Sequoia.

The rest have been at the firm for nearly a decade.

“Our true north at Sequoia India is to relentlessly focus on helping founders win. These new promotions are yet another step in that direction. Our new Managing Directors bring close to 40 years of collective experience working with over 50 startups in this region, and we think they will make very impactful contributions to the journeys of some of the most important startups in our region,” Sequoia said.

VC firms generally promote investors along with a new fund. For example, except Sharma, the other five investors were promoted to Principal in 2018, when Sequoia announced its $695 million sixth fund.

Being promoted outside the fund cycle may mean that the new investors' full benefits may kick in only from Sequoia India's next fund, likely to be raised next year.