O'Driscoll: tranche structures price away the growth-round excess return, and that is how the trend ends
Rory O'Driscoll · Should the US Ban Chinese Open-Source Models | OpenRouter's Chance To Sell | Stripe Buying PayPal · Jul 23, 2026 · at 1:12:01
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Save the cut (mp4) →“So now what you're seeing with these tranche deals is, You know, nature abhors a vacuum, and sequoia abhors leaving a dollar on the table, so what's happening is people are realizing everyone wants these growth rounds, and this is how these trends end. Everyone, they're going, oh, everyone wants these growth rounds, so now what we can do is do this tranche structure and effectively price the excess return away from Harry and back to us, right? So, yes, because it's been such a good place to play that capital's rushing in. At some point, it won't be a good place to play.”
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