Sequoia Poised for Nearly $3 Billion Gain From Klarna IPO

Klarna’s two-decade journey to a public listing means a lucrative return for its biggest backer—Sequoia Capital. The Silicon Valley firm stands to make about $2.65 billion on paper from its investment in the buy now, pay later lender, which endured boardroom drama and tumbling valuations on its way to a public listing.

Sequoia owns 21% of Klarna’s voting shares worth $3.15 billion based on Klarna’s initial public offering price of $40, which values the company at more than $15 billion. The VC firm invested around $500 million starting in 2010, according to two people familiar with the matter. This would imply a return of more than six times its investment, giving the firm its third major exit this year, including Figma’s listing and the pending sale of Sequoia-backed Wiz to Google earlier this year.