Sequoia handed partners 5.76 million DoorDash shares, about $1 billion, dropping below 5% disclosure
Sequoia's funds handed 5.76 million DoorDash shares to their partners on November 2, cutting the group to 4.3% and out of automatic disclosure, days after DoorDash signed a $17 billion, debt-funded Instacart deal and its co-founders sold under pre-set plans.
Vincent Jiang · 2 min read
Two Form 4s and a Schedule 13G/A hit EDGAR on November 4, and together they show DoorDash's−8.38% — DoorDash, down 8.38 percent as of its last quote founding backer quietly handing its biggest position to its own investors 12. On November 2, Sequoia Capital Fund, LP distributed 5,135,244 DoorDash shares to its partners, and Sequoia Capital Fund Parallel, LLC another 628,103, "for no consideration," per the filings: an in-kind payout of about 5.76 million shares, worth roughly $1.0 to $1.1 billion at the day's trading prices 12.
The stake slipped under the disclosure line
The group's stake fell from 23,567,430 shares on September 30 to 17,804,083, or 4.3% of DoorDash's 412.0 million Class A shares 2. That drops Sequoia below the 5% threshold, which ends the automatic visibility its 13G filings have carried; from here, its moves surface only when insiders report them 2.
The same day, co-founder Andy Fang sold 5,000 shares at $181.17 ($906,000) and co-founder Stanley Tang sold 23,125 shares for about $4.4 million, both under pre-set 10b5-1 plans 134. Fang's filing states his sold shares came from Sequoia's distribution. Director Alfred Lin, one of Sequoia's seven general partners, took 254,364 shares into an estate vehicle, holding 1,131,481 after 134.
The timing is the story
The handout landed three days after DoorDash signed the $17 billion Instacart agreement, backed by a bridge loan of up to $13 billion and a $1.25 billion fee if antitrust regulators block the deal, and after a record quarter: net income of $466 million, up 91%, on revenue of $4.6 billion 35.
DoorDash's record quarter: net income up 91% as the Instacart deal was signed
Data
| Net income ($m) | |
|---|---|
| Q3 25 | 244 |
| Q4 25 | 213 |
| Q1 26 | 184 |
| Q2 26 | 200 |
| Q3 26 | 466 |
The same week, Sequoia published its restructuring memo: about $10 billion raised in new funds, the London office closing, the Arc accelerator and Scouts programs killed 6. The retreat is a portfolio decision, not a verdict on DoorDash's business, which set records across Marketplace GOV, revenue and net income 5.
But the arithmetic of supply stands: 5.76 million freely tradable shares left one holder's drawer in a single day while the company that printed them raises $13 billion to buy a competitor. Sequoia's limited partners hold the paper; public buyers absorb the rest. Watch the Forms 4, because the 13G telemetry is gone.
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