Sequoia Capital, a Silicon Valley venture capital titan, has marked up the value of its 2020 Sequoia Capital U.S. Venture XVII fund by 24.6% in June, according to an analysis by PitchBook. This notable increase is all the more remarkable given that the fund has yet to have any exits, defying expectations for funds from the 2020 vintage.

The 2020 fund vintage has been predicted to underperform due to the frothy valuations of 2020 and 2021. However, Sequoia's markup suggests that the venture capital firm's investments in AI companies may be bucking this trend. Sequoia is an investor in several buzzy AI startups, including OpenAI, Glean, and Harvey, among others. The lofty valuations of these AI companies may be contributing to the fund's strong performance.

Sequoia raised more than $800 million for Fund XVII, which closed in 2022. The fund's 24.6% markup is a significant increase, especially considering the lack of exits. This suggests that the fund's portfolio companies are continuing to grow and gain value, even in the absence of exits.

The markup is also a testament to Sequoia's investment strategy and its ability to identify promising startups in the AI sector. The venture capital firm has a long history of investing in successful companies, and its focus on AI may be paying off in the current market.

The implications of Sequoia's markup are far-reaching, suggesting that the AI sector may be more resilient than other areas of the tech industry. This could be a sign that the AI sector is decoupling from the broader tech market, which has been experiencing a downturn in recent months.

As the venture capital industry continues to navigate the challenges of the current market, Sequoia's markup serves as a reminder that there are still opportunities for growth and investment. The firm's focus on AI and its ability to identify promising startups may be a key factor in its success, and other venture capital firms may be taking note.

In conclusion, Sequoia Capital's 24.6% markup of its 2020 venture fund is a significant development in the venture capital industry. The lack of exits notwithstanding, the fund's strong performance is a testament to the resilience of the AI sector and Sequoia's investment strategy. As the industry looks to the future, Sequoia's markup may be a sign of things to come.