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Microsoft Surface Pro 12-inch review

Microsoft Surface Pro 12-inch review

I have always had a soft spot for the Surface Pro X. It was the thinner, lighter, and fanless Surface tablet that I had always wanted Microsoft to make, but when it came out nearly six years ago, Windows wasn’t ready to handle the Arm chip inside — and vice versa. Sluggish performance and app compatibility issues kept the Surface Pro X from living up to its beautiful design. It was a heartbreaker.

Microsoft is once again trying to perfect the Surface Pro design with a $799 12-inch version of its tablet and laptop hybrid that ditches the fan and uses Qualcomm’s latest Snapdragon X Plus chip. This time around, it’s warming my heart instead of breaking it, thanks to a redesign of the entire tablet and the performance and battery life to match.

The result of the overhaul is a tablet that combines some of the best design elements you’ll find on an iPad or Samsung’s tablets, with the versatility of Windows. While the competition has been trying to copy the Surface Pro for years, Microsoft has now borrowed from the best tablets to improve its own laptop and tablet hybrid even further.

$800

The Good

  • Beautiful fanless design
  • Great battery life
  • The keyboard is a lot sturdier

The Bad

  • Windows still needs a better UX in tablet mode
  • The thick display bezels
  • No haptic touchpad

Last year’s Surface Pro 11 (now the Surface Pro 13-inch) had the same basic design Microsoft had been using since the Surface Pro 8 in 2021, with an airflow vent wrapped around the top half of the chassis that your fingers would tend to find if you were using it as a tablet. The most obvious design change to the 12-inch Surface Pro, other than its smaller display, is that it doesn’t have those vents. It’s sealed off and rounded in a way that an iPad is, so it feels a lot softer to hold.

I love this new design. The lack of a fan has allowed Microsoft to push ahead with this change, and it’s one that I really hope sticks for all future models because I never want to use a Surface Pro with a fan ever again.

While the kickstand is largely unchanged, this new rounded design also enables some big changes to how the stylus and keyboard work on the 12-inch Surface Pro. Microsoft has moved the stylus storage and charging to the top rear of this smaller Surface Pro, much like Samsung’s Galaxy Tab devices. It’s more convenient than having to dig into the keyboard and fiddle to get the Surface Pen out, and Microsoft has managed to use strong enough magnets that the stylus never once dropped inside my bag over the past few weeks.

However, that does mean that if you’re in tablet mode but not actively using the pen, it’s often in the way. The keyboard cover won’t sit flush with the back of the Surface if you fold it back while the pen is attached; there’s a gap at the top where it rests against the pen, and it feels a bit wobbly. And if you use the Surface Pro as a pure tablet, but don’t use the stylus, then you’ll probably end up resting your fingers on it or shaking the slightly loose button. It’s not a big deal, especially when you consider that the Surface Pro ships without a keyboard ($149) or stylus ($129), and you have to purchase them separately or in a $249 bundle. Most people probably won’t bother with the stylus, but if you do, that’s something to be aware of.

The stylus doesn’t fall off easily in a bag, thanks to strong magnets.

The stylus doesn’t fall off easily in a bag, thanks to strong magnets.

Repositioning the stylus has allowed Microsoft to make some significant changes to the keyboard on the 12-inch Surface Pro. While it still magnetically clicks into place on the bottom edge of the tablet, it now lays perfectly flat. The keyboards of previous models had a second magnetic attachment point at the bottom of the front bezel, optionally giving the keyboard a slight angle. Without it, the keyboard feels a lot sturdier.

Previous Surface Pro keyboards also had a lot of flex to them, which always put me off using the Surface Pro on work trips where I’d be writing thousands of words for stories. The new keyboard has no flex whatsoever. Even on my lap, it feels sturdier for typing, though the kickstand prevents you from having it far back on your legs as you would a regular laptop, and I quickly got used to the slightly smaller size. The other big change is that it’s no longer lined with alcantara fabric on the palm rests. The rear cover still has alcantara, but Microsoft is now using a plastic for the palm rests instead of the fabric that could easily get dirty. I think I still prefer the softer touch of the alcantara palm rests, though.

You can’t use the keyboard wirelessly like you could with the 13-inch Flex keyboard, and Microsoft has also ditched the haptic touchpad. I never used the wireless option, but the lack of haptics really makes the touchpad feel a lot more bland, and it’s something I’ve missed a lot over the past few weeks.

I like how sturdy this flat keyboard feels.

I like how sturdy this flat keyboard feels.

One thing I haven’t missed is the larger OLED display found on the 13-inch model. I really hate the grainy effect that the OLED has, especially around black text on a white background. On the 12-inch model, Microsoft is using a regular 3:2 PixelSense LCD display, and while it’s a slightly lower resolution and a 90Hz panel instead of 120Hz, I far prefer it for reading text. I do wish the bezels were a lot slimmer, but Microsoft has at least made them the same size all around the 12-inch display, so they feel a little less distracting than on the 13-inch model.

In keeping with Microsoft borrowing ideas from other tablets, the company has repositioned the rear camera on the 12-inch Surface Pro so it’s in the corner like on Samsung’s tablets or Apple’s iPads. I still wouldn’t be caught dead taking photos using a tablet, but it makes more sense like this, rather than centered on the long edge, so you can at least hold the Surface Pro vertically if you really want to take photos or videos.

The front-facing 1080p camera isn’t ultrawide this time around, so it doesn’t have the unflattering fish-eye effect and framing found on the 13-inch Surface Pro. I’ve used it for plenty of calls, and while I’m still not a fan of the way the eye contact feature changes the shape of my eyes, the other Windows Studio Effects are super useful for improving your lighting or blurring out the background automatically.

Inside the 12-inch, Microsoft is using Qualcomm’s eight-core Snapdragon X Plus chip. It’s an Arm-based processor, so that means apps will run emulated unless a developer has natively compiled their app for Arm64. That used to be a big issue with the Surface Pro X in 2019, but a lot has changed over the past 12 months, let alone six years.

The 12-inch doesn’t have any fans and it makes the design far more tablet-like.

The 12-inch doesn’t have any fans and it makes the design far more tablet-like.

Most of the apps I use on a daily basis are now native Arm64. The big exceptions for me include Discord and Premiere Pro. While Discord has been busy adding currencies for ads instead of releasing a native Arm version of its app, that might be about to change. I’ve been using an early Arm-native development build of Discord recently, and it totally solves all of the sluggish performance issues.

The same can’t be said for Premiere Pro, though. While Adobe has created an Arm64 version of Photoshop, you still have to install the Intel-based version of Premiere Pro. It’s not totally unusable, but I wouldn’t recommend any Arm-based machines for Premiere Pro usage until Adobe finally addresses this.

The Snapdragon X Plus chip inside the 12-inch Surface Pro has two fewer cores than the base LCD 13-inch model, and four cores less than the 12-core OLED variant. I’ve been using a 10-core Surface Laptop regularly over the past year, and this Surface Pro hasn’t felt slower at all.

As this is a Copilot Plus PC, Microsoft also uses the neural processing unit (NPU) built into Qualcomm’s chip to enable a bunch of AI-powered features in Windows. The controversial Recall feature is now available, which takes snapshots of mostly everything you do on the Surface Pro to create a scrollable timeline. I’ve found Recall to be creepy, clever, and compelling, but it’s not a big reason to buy a Copilot Plus PC. I’ve loved using the improved AI-powered Windows Search though, which lets me search for text inside files or photos, and find documents a lot more quickly.

Microsoft has removed the Surface Connect charging port, but you can charge with either of its USB-C ports.

Microsoft has removed the Surface Connect charging port, but you can charge with either of its USB-C ports.

If you’re like me and most of your work is in the browser or involves apps that are native Arm64, then the Surface Pro 12-inch feels like the performance of a laptop squeezed into a tablet. I’ve found that I get around nine hours of battery life with mixed usage of the browser, apps like Photoshop and Slack, and maybe the odd Teams call here or there.

I’ve never really worried about charging the Surface Pro 12-inch, and on some days I even used it for an eight-hour working day and still had 30 percent battery remaining. I’d wake up the next day and it still had that 30 percent, or close to it, ready for the day ahead. Microsoft has also ditched its magnetic Surface Connect charging cable, but there are two USB-C ports that can be used to charge up the Surface Pro. I only use USB-C to charge my devices, so I don’t think I’ll miss the Surface Connect port other than the neat way it attaches on the 13-inch model.

While the Surface Pro is great at resuming instantly and not draining battery life in your bag or overnight, if you don’t use it for a couple of days over a weekend then you’ll have to wait 30 seconds or so for it to be ready to use on a Monday morning. This isn’t a huge issue, but the iPad never goes into a deep sleep mode like this, and on a couple of occasions I’ve resumed the Surface Pro on a Monday and the Windows Hello camera has failed to work. I kept getting a “something went wrong” message, but rebooting the device brought it back to life again.

I’ve used this Surface Pro on a train, on my sofa, on a desk, and in pubs and cafes over the past few weeks. I still find that I have to adjust my posture or body to use the Surface Pro in my lap because of the kickstand, but it almost feels worth this slight compromise for the versatility of using a small PC on the go.

The Surface Pro is getting even close to a dream miniature PC.

The Surface Pro is getting even close to a dream miniature PC.

This Surface Pro redesign also presents some of the best bits of rival tablets into a piece of hardware that feels a lot more tablet-like than Microsoft has ever created. I’ve been using this Surface Pro in tablet mode more often as a result, simply because of the smaller size and the ease of switching between laptop and tablet modes. The operating system and apps still feel like more of a laptop, though. Microsoft also sells the Surface Pro without a keyboard, as if it’s a pure tablet, but as always, you really need to purchase that $150 keyboard to unlock the best experience.

That pushes the pricing up to $950, which is more than you’d pay for a 13-inch Surface Laptop, and close to the $999 launch price of the Surface Laptop 7. While the Surface pricing situation seems more complicated than ever, I love small computers, and the 12-inch Surface Pro has this allure to it that makes me want to keep picking it up for the day.

I’d still like to see Microsoft improve the tablet experience in Windows 11 with a mode that’s more like what existed in Windows 8. But even without those improvements, the 12-inch Surface Pro is as close as Microsoft has ever gotten to fulfilling my dream of a lightweight PC you can throw under your arm and carry around all day without worrying about battery life. It’s still not perfect, but it’s not the heartbreaker the Surface Pro X once was.

2025 Microsoft Surface Pro 12-inch specs (as reviewed)

Display: 12-inch (2196 x 1464) 90Hz touschscreen

CPU: Qualcomm Snapdragon X Plus (8-core)

Webcam: 1080p front-facing, 10-megapixel rear-facing

Connectivity: Wi-Fi 7, Bluetooth 5.4

Dimensions: 10.8 x 7.47 x 0.30

Photography by Amelia Holowaty Krales / The Verge

Source link
#Microsoft #Surface #Pro #12inch #review

In recent days, founders and founders-turned-investors took to X to share horror stories about being mistreated by VCs. Their complaints ranged from VCs falling asleep during pitch meetings to investors suggesting a founder fire a co-founder.

Brendan Foody, co-founder of the AI talent platform Mercor, which was last valued at $10 billion, went so far as to call out Sequoia, arguably one of the most elite VC firms in the world.

“The “sequoia scam” is worse than a single horror story,” Foody wrote on X. “in the last 6 [months] ive seen a half dozen rounds where sequoia invests in 2 tranches. everyone pretends they only did the higher valuation. founders misrepresent this to their employees & then shop it to angels too.”

TechCrunch has previously reported on VCs investing in the same round at different valuations. Under this mechanism, the lead VC firm invests a significant chunk of its capital at a lower, preferential valuation, while putting a much smaller portion of capital in at a drastically higher price. The massive “headline” valuation that gets announced manufactures the perception of a dominant market winner, masking the fact that the lead investor’s actual average entry price was significantly lower.

The disparity can be stark. For example, when the AI-driven IT helpdesk startup Serval announced a $75 million Series B at a $1 billion valuation, the announcement didn’t tell the whole story. According to The Wall Street Journal, Sequoia’s actual lowest entry point valued the company at just $400 million — less than half the headline figure. The gap between those two numbers is the gap between perception and reality that Foody is pointing at.

Serval isn’t alone. At Aaru, a startup that uses AI to simulate user behavior for market research, lead investor Redpoint backed the company at a $450 million valuation despite an announced $1 billion headline price.

Sequoia’s Shaun Maguire pushed back on Foody’s characterization directly. “TBH I have seen some of this behavior but I think it’s unfair to call it the ‘Sequoia scam,’” Maguire wrote in response to Foody on X. “This has happened approximately five times during my seven years at Sequoia. What happens is other investors are willing to pay a high price for a hot company — usually AI — at multiples above what we’re willing to pay. So we try to decouple the company-building relationship with our partner from the capital, and this leads to two tranches at different valuations in close succession.

“I’m not aware of anything shady here,” Maguire continued, “but if you’ve seen it I’d love to know. VC is a repeated game, so it just doesn’t make sense for us to try to mislead people. And if anyone has, I’d love to know. And in general, congrats on the success of Mercor — it was a miss for us.”

Maguire’s response frames the practice as a market reality rather than a deliberate maneuver — Sequoia, he suggests, is simply unwilling to pay what competitors will pay for the hottest deals, so it structures its participation differently. Whether that explanation fully holds up depends on a question Maguire doesn’t address: what founders are telling the people who don’t already know about the lower tranche.

Although Sequoia appears to use this pricing mechanism most frequently, Foody acknowledged it isn’t the only firm using this tactic. And while the dual-pricing structures certainly inflate a startup’s perceived worth and help attract top talent, calling the practice a “scam” may be going too far.

That’s because employee stock options should theoretically be priced based on the blended value of all tranches — not the headline number — according to Jason Woo, partner in valuation and financial modeling at Armanino, whose firm provides the independent 409A appraisals startups use to set option prices. A 409A is supposed to reflect a company’s fair market value, giving employees a strike price that’s insulated from whatever valuation gets announced in a press release.

There’s a catch: 409A valuations are widely understood to skew low. Because a lower strike price means a smaller tax bill for the company, there is a structural incentive to keep that number down. The appraisal that’s supposed to protect employees from an inflated headline valuation is also, by design, not trying particularly hard to reach the top of the range.

The angel question is more complicated. Unlike employees, angels are writing checks, not receiving options. There is no independent appraiser standing between an angel investor and whatever number a founder chooses to share.

The dual-pricing structure is just one of way VCs and founders game the perception of success in a hyper-competitive market. Another, more pervasive tactic involves manipulating or outright overstating annual recurring revenue (ARR).

The VC Niko Bonatsos, a longtime veteran of General Catalyst who more recently founded Verdict Capital, addressed this issue during one of TechCrunch’s events in Athens last month. “We [at Verdict] mostly invest before metrics, before product, before the company [has fully taken shape] but I do have a past portfolio, and sometimes the conversations are telling. I’ll get a call or an email with a very high ARR number. I’ll think: I didn’t remember that company doing so well. So I reach out to the founder: ‘What happened? Why are the numbers so strong?’ And the answer is: ‘Oh yeah, it’s 365 times the revenue we made yesterday because one of our campaigns hit.’ So yeah, some of these terms have lost meaning.”

Foody declined to comment further. Sequoia didn’t immediately respond to a request for comment.

— With additional reporting from Connie Loizos

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Mercors #Brendan #Foody #calls #Sequoia #dualpricing #valuation #tricks #TechCrunchMercor,Sequoia Partners,Valuations">Mercor’s Brendan Foody calls out Sequoia over ‘dual-pricing’ valuation tricks | TechCrunch
In recent days, founders and founders-turned-investors took to X to share horror stories about being mistreated by VCs. Their complaints ranged from VCs falling asleep during pitch meetings to investors suggesting a founder fire a co-founder.

Brendan Foody, co-founder of the AI talent platform Mercor, which was last valued at  billion, went so far as to call out Sequoia, arguably one of the most elite VC firms in the world.







“The “sequoia scam” is worse than a single horror story,” Foody wrote on X. “in the last 6 [months] ive seen a half dozen rounds where sequoia invests in 2 tranches. everyone pretends they only did the higher valuation. founders misrepresent this to their employees & then shop it to angels too.”

TechCrunch has previously reported on VCs investing in the same round at different valuations. Under this mechanism, the lead VC firm invests a significant chunk of its capital at a lower, preferential valuation, while putting a much smaller portion of capital in at a drastically higher price. The massive “headline” valuation that gets announced manufactures the perception of a dominant market winner, masking the fact that the lead investor’s actual average entry price was significantly lower.

The disparity can be stark. For example, when the AI-driven IT helpdesk startup Serval announced a  million Series B at a  billion valuation, the announcement didn’t tell the whole story. According to The Wall Street Journal, Sequoia’s actual lowest entry point valued the company at just 0 million — less than half the headline figure. The gap between those two numbers is the gap between perception and reality that Foody is pointing at.

Serval isn’t alone. At Aaru, a startup that uses AI to simulate user behavior for market research, lead investor Redpoint backed the company at a 0 million valuation despite an announced  billion headline price.

Sequoia’s Shaun Maguire pushed back on Foody’s characterization directly. “TBH I have seen some of this behavior but I think it’s unfair to call it the ‘Sequoia scam,’” Maguire wrote in response to Foody on X. “This has happened approximately five times during my seven years at Sequoia. What happens is other investors are willing to pay a high price for a hot company — usually AI — at multiples above what we’re willing to pay. So we try to decouple the company-building relationship with our partner from the capital, and this leads to two tranches at different valuations in close succession. 


“I’m not aware of anything shady here,” Maguire continued, “but if you’ve seen it I’d love to know. VC is a repeated game, so it just doesn’t make sense for us to try to mislead people. And if anyone has, I’d love to know. And in general, congrats on the success of Mercor — it was a miss for us.”

Maguire’s response frames the practice as a market reality rather than a deliberate maneuver — Sequoia, he suggests, is simply unwilling to pay what competitors will pay for the hottest deals, so it structures its participation differently. Whether that explanation fully holds up depends on a question Maguire doesn’t address: what founders are telling the people who don’t already know about the lower tranche.

Although Sequoia appears to use this pricing mechanism most frequently, Foody acknowledged it isn’t the only firm using this tactic. And while the dual-pricing structures certainly inflate a startup’s perceived worth and help attract top talent, calling the practice a “scam” may be going too far.







That’s because employee stock options should theoretically be priced based on the blended value of all tranches — not the headline number — according to Jason Woo, partner in valuation and financial modeling at Armanino, whose firm provides the independent 409A appraisals startups use to set option prices. A 409A is supposed to reflect a company’s fair market value, giving employees a strike price that’s insulated from whatever valuation gets announced in a press release.

There’s a catch: 409A valuations are widely understood to skew low. Because a lower strike price means a smaller tax bill for the company, there is a structural incentive to keep that number down. The appraisal that’s supposed to protect employees from an inflated headline valuation is also, by design, not trying particularly hard to reach the top of the range.

The angel question is more complicated. Unlike employees, angels are writing checks, not receiving options. There is no independent appraiser standing between an angel investor and whatever number a founder chooses to share.

The dual-pricing structure is just one of way VCs and founders game the perception of success in a hyper-competitive market. Another, more pervasive tactic involves manipulating or outright overstating annual recurring revenue (ARR). 

The VC Niko Bonatsos, a longtime veteran of General Catalyst who more recently founded Verdict Capital, addressed this issue during one of TechCrunch’s events in Athens last month. “We [at Verdict] mostly invest before metrics, before product, before the company [has fully taken shape] but I do have a past portfolio, and sometimes the conversations are telling. I’ll get a call or an email with a very high ARR number. I’ll think: I didn’t remember that company doing so well. So I reach out to the founder: ‘What happened? Why are the numbers so strong?’ And the answer is: ‘Oh yeah, it’s 365 times the revenue we made yesterday because one of our campaigns hit.’ So yeah, some of these terms have lost meaning.”

Foody declined to comment further. Sequoia didn’t immediately respond to a request for comment.

 — With additional reporting from Connie Loizos


When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Mercors #Brendan #Foody #calls #Sequoia #dualpricing #valuation #tricks #TechCrunchMercor,Sequoia Partners,Valuations

horror stories about being mistreated by VCs. Their complaints ranged from VCs falling asleep during pitch meetings to investors suggesting a founder fire a co-founder.

Brendan Foody, co-founder of the AI talent platform Mercor, which was last valued at $10 billion, went so far as to call out Sequoia, arguably one of the most elite VC firms in the world.

“The “sequoia scam” is worse than a single horror story,” Foody wrote on X. “in the last 6 [months] ive seen a half dozen rounds where sequoia invests in 2 tranches. everyone pretends they only did the higher valuation. founders misrepresent this to their employees & then shop it to angels too.”

TechCrunch has previously reported on VCs investing in the same round at different valuations. Under this mechanism, the lead VC firm invests a significant chunk of its capital at a lower, preferential valuation, while putting a much smaller portion of capital in at a drastically higher price. The massive “headline” valuation that gets announced manufactures the perception of a dominant market winner, masking the fact that the lead investor’s actual average entry price was significantly lower.

The disparity can be stark. For example, when the AI-driven IT helpdesk startup Serval announced a $75 million Series B at a $1 billion valuation, the announcement didn’t tell the whole story. According to The Wall Street Journal, Sequoia’s actual lowest entry point valued the company at just $400 million — less than half the headline figure. The gap between those two numbers is the gap between perception and reality that Foody is pointing at.

Serval isn’t alone. At Aaru, a startup that uses AI to simulate user behavior for market research, lead investor Redpoint backed the company at a $450 million valuation despite an announced $1 billion headline price.

Sequoia’s Shaun Maguire pushed back on Foody’s characterization directly. “TBH I have seen some of this behavior but I think it’s unfair to call it the ‘Sequoia scam,’” Maguire wrote in response to Foody on X. “This has happened approximately five times during my seven years at Sequoia. What happens is other investors are willing to pay a high price for a hot company — usually AI — at multiples above what we’re willing to pay. So we try to decouple the company-building relationship with our partner from the capital, and this leads to two tranches at different valuations in close succession.

“I’m not aware of anything shady here,” Maguire continued, “but if you’ve seen it I’d love to know. VC is a repeated game, so it just doesn’t make sense for us to try to mislead people. And if anyone has, I’d love to know. And in general, congrats on the success of Mercor — it was a miss for us.”

Maguire’s response frames the practice as a market reality rather than a deliberate maneuver — Sequoia, he suggests, is simply unwilling to pay what competitors will pay for the hottest deals, so it structures its participation differently. Whether that explanation fully holds up depends on a question Maguire doesn’t address: what founders are telling the people who don’t already know about the lower tranche.

Although Sequoia appears to use this pricing mechanism most frequently, Foody acknowledged it isn’t the only firm using this tactic. And while the dual-pricing structures certainly inflate a startup’s perceived worth and help attract top talent, calling the practice a “scam” may be going too far.

That’s because employee stock options should theoretically be priced based on the blended value of all tranches — not the headline number — according to Jason Woo, partner in valuation and financial modeling at Armanino, whose firm provides the independent 409A appraisals startups use to set option prices. A 409A is supposed to reflect a company’s fair market value, giving employees a strike price that’s insulated from whatever valuation gets announced in a press release.

There’s a catch: 409A valuations are widely understood to skew low. Because a lower strike price means a smaller tax bill for the company, there is a structural incentive to keep that number down. The appraisal that’s supposed to protect employees from an inflated headline valuation is also, by design, not trying particularly hard to reach the top of the range.

The angel question is more complicated. Unlike employees, angels are writing checks, not receiving options. There is no independent appraiser standing between an angel investor and whatever number a founder chooses to share.

The dual-pricing structure is just one of way VCs and founders game the perception of success in a hyper-competitive market. Another, more pervasive tactic involves manipulating or outright overstating annual recurring revenue (ARR).

The VC Niko Bonatsos, a longtime veteran of General Catalyst who more recently founded Verdict Capital, addressed this issue during one of TechCrunch’s events in Athens last month. “We [at Verdict] mostly invest before metrics, before product, before the company [has fully taken shape] but I do have a past portfolio, and sometimes the conversations are telling. I’ll get a call or an email with a very high ARR number. I’ll think: I didn’t remember that company doing so well. So I reach out to the founder: ‘What happened? Why are the numbers so strong?’ And the answer is: ‘Oh yeah, it’s 365 times the revenue we made yesterday because one of our campaigns hit.’ So yeah, some of these terms have lost meaning.”

Foody declined to comment further. Sequoia didn’t immediately respond to a request for comment.

— With additional reporting from Connie Loizos

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Mercors #Brendan #Foody #calls #Sequoia #dualpricing #valuation #tricks #TechCrunchMercor,Sequoia Partners,Valuations">Mercor’s Brendan Foody calls out Sequoia over ‘dual-pricing’ valuation tricks | TechCrunch

In recent days, founders and founders-turned-investors took to X to share horror stories about being mistreated by VCs. Their complaints ranged from VCs falling asleep during pitch meetings to investors suggesting a founder fire a co-founder.

Brendan Foody, co-founder of the AI talent platform Mercor, which was last valued at $10 billion, went so far as to call out Sequoia, arguably one of the most elite VC firms in the world.

“The “sequoia scam” is worse than a single horror story,” Foody wrote on X. “in the last 6 [months] ive seen a half dozen rounds where sequoia invests in 2 tranches. everyone pretends they only did the higher valuation. founders misrepresent this to their employees & then shop it to angels too.”

TechCrunch has previously reported on VCs investing in the same round at different valuations. Under this mechanism, the lead VC firm invests a significant chunk of its capital at a lower, preferential valuation, while putting a much smaller portion of capital in at a drastically higher price. The massive “headline” valuation that gets announced manufactures the perception of a dominant market winner, masking the fact that the lead investor’s actual average entry price was significantly lower.

The disparity can be stark. For example, when the AI-driven IT helpdesk startup Serval announced a $75 million Series B at a $1 billion valuation, the announcement didn’t tell the whole story. According to The Wall Street Journal, Sequoia’s actual lowest entry point valued the company at just $400 million — less than half the headline figure. The gap between those two numbers is the gap between perception and reality that Foody is pointing at.

Serval isn’t alone. At Aaru, a startup that uses AI to simulate user behavior for market research, lead investor Redpoint backed the company at a $450 million valuation despite an announced $1 billion headline price.

Sequoia’s Shaun Maguire pushed back on Foody’s characterization directly. “TBH I have seen some of this behavior but I think it’s unfair to call it the ‘Sequoia scam,’” Maguire wrote in response to Foody on X. “This has happened approximately five times during my seven years at Sequoia. What happens is other investors are willing to pay a high price for a hot company — usually AI — at multiples above what we’re willing to pay. So we try to decouple the company-building relationship with our partner from the capital, and this leads to two tranches at different valuations in close succession.

“I’m not aware of anything shady here,” Maguire continued, “but if you’ve seen it I’d love to know. VC is a repeated game, so it just doesn’t make sense for us to try to mislead people. And if anyone has, I’d love to know. And in general, congrats on the success of Mercor — it was a miss for us.”

Maguire’s response frames the practice as a market reality rather than a deliberate maneuver — Sequoia, he suggests, is simply unwilling to pay what competitors will pay for the hottest deals, so it structures its participation differently. Whether that explanation fully holds up depends on a question Maguire doesn’t address: what founders are telling the people who don’t already know about the lower tranche.

Although Sequoia appears to use this pricing mechanism most frequently, Foody acknowledged it isn’t the only firm using this tactic. And while the dual-pricing structures certainly inflate a startup’s perceived worth and help attract top talent, calling the practice a “scam” may be going too far.

That’s because employee stock options should theoretically be priced based on the blended value of all tranches — not the headline number — according to Jason Woo, partner in valuation and financial modeling at Armanino, whose firm provides the independent 409A appraisals startups use to set option prices. A 409A is supposed to reflect a company’s fair market value, giving employees a strike price that’s insulated from whatever valuation gets announced in a press release.

There’s a catch: 409A valuations are widely understood to skew low. Because a lower strike price means a smaller tax bill for the company, there is a structural incentive to keep that number down. The appraisal that’s supposed to protect employees from an inflated headline valuation is also, by design, not trying particularly hard to reach the top of the range.

The angel question is more complicated. Unlike employees, angels are writing checks, not receiving options. There is no independent appraiser standing between an angel investor and whatever number a founder chooses to share.

The dual-pricing structure is just one of way VCs and founders game the perception of success in a hyper-competitive market. Another, more pervasive tactic involves manipulating or outright overstating annual recurring revenue (ARR).

The VC Niko Bonatsos, a longtime veteran of General Catalyst who more recently founded Verdict Capital, addressed this issue during one of TechCrunch’s events in Athens last month. “We [at Verdict] mostly invest before metrics, before product, before the company [has fully taken shape] but I do have a past portfolio, and sometimes the conversations are telling. I’ll get a call or an email with a very high ARR number. I’ll think: I didn’t remember that company doing so well. So I reach out to the founder: ‘What happened? Why are the numbers so strong?’ And the answer is: ‘Oh yeah, it’s 365 times the revenue we made yesterday because one of our campaigns hit.’ So yeah, some of these terms have lost meaning.”

Foody declined to comment further. Sequoia didn’t immediately respond to a request for comment.

— With additional reporting from Connie Loizos

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Mercors #Brendan #Foody #calls #Sequoia #dualpricing #valuation #tricks #TechCrunchMercor,Sequoia Partners,Valuations
Battery Finder Tool Simplifies the Replacement Process
ASUS Expands Access to Genuine Laptop Battery Replacements Across India
	
ASUS has introduced a new initiative to make genuine laptop battery replacements easier for customers across India. Through this initiative, customers can now replace their laptop batteries with ease and get proper service and warranty advantages in the process. Rather than opting for risky third-party alternatives, customers can now purchase official ASUS batteries. This initiative covers not only regular laptops but also gaming laptops.



Battery Finder Tool Simplifies the Replacement Process







ASUS has launched a Battery Finder microsite that will make laptop battery replacement easy for its customers. Using this facility, consumers can enter their laptop model and find a compatible battery. The system also finds the locations nearest to them where such batteries are available at exclusive ASUS outlets and channel partners. Consumers can even contact ASUS’s authorized service centers for assistance.



The battery replacement program supports many of ASUS’s most popular laptop series. Customers with Vivobook laptops can access genuine replacement batteries through the initiative. Several ROG gaming laptops are also part of the program. ASUS has further expanded coverage to include ExpertBook, ProArt, and TUF models. The Battery Finder platform helps users confirm compatibility before visiting a store or service center.



ASUS Strengthens Its After-Sales Support Network 



As part of enhancing its customer support services, ASUS has extended its post-sale service network in various parts of India. This has included areas such as Delhi-NCR, Uttar Pradesh, Uttarakhand, Maharashtra, Karnataka, Tamil Nadu, Kerala, Gujarat, Punjab, and others. ASUS has made this service available as part of its Assurance Program. The organization’s main aim is to provide reliable and effective service, warranties, and an enhanced customer experience.



Apart from increasing the number of battery sources, ASUS is also working to help consumers manage their batteries effectively. Consumers are advised on how to charge their laptop batteries to ensure that their performance remains high. ASUS also highlights the need to control laptop temperature and have devices serviced regularly.

#ASUS #Expands #Access #Genuine #Laptop #Battery #Replacements #IndiaAsus

ASUS has launched a Battery Finder microsite that will make laptop battery replacement easy for its customers. Using this facility, consumers can enter their laptop model and find a compatible battery. The system also finds the locations nearest to them where such batteries are available at exclusive ASUS outlets and channel partners. Consumers can even contact ASUS’s authorized service centers for assistance.

The battery replacement program supports many of ASUS’s most popular laptop series. Customers with Vivobook laptops can access genuine replacement batteries through the initiative. Several ROG gaming laptops are also part of the program. ASUS has further expanded coverage to include ExpertBook, ProArt, and TUF models. The Battery Finder platform helps users confirm compatibility before visiting a store or service center.

ASUS Strengthens Its After-Sales Support Network

As part of enhancing its customer support services, ASUS has extended its post-sale service network in various parts of India. This has included areas such as Delhi-NCR, Uttar Pradesh, Uttarakhand, Maharashtra, Karnataka, Tamil Nadu, Kerala, Gujarat, Punjab, and others. ASUS has made this service available as part of its Assurance Program. The organization’s main aim is to provide reliable and effective service, warranties, and an enhanced customer experience.

Apart from increasing the number of battery sources, ASUS is also working to help consumers manage their batteries effectively. Consumers are advised on how to charge their laptop batteries to ensure that their performance remains high. ASUS also highlights the need to control laptop temperature and have devices serviced regularly.

#ASUS #Expands #Access #Genuine #Laptop #Battery #Replacements #IndiaAsus">ASUS Expands Access to Genuine Laptop Battery Replacements Across India
	
ASUS has introduced a new initiative to make genuine laptop battery replacements easier for customers across India. Through this initiative, customers can now replace their laptop batteries with ease and get proper service and warranty advantages in the process. Rather than opting for risky third-party alternatives, customers can now purchase official ASUS batteries. This initiative covers not only regular laptops but also gaming laptops.



Battery Finder Tool Simplifies the Replacement Process







ASUS has launched a Battery Finder microsite that will make laptop battery replacement easy for its customers. Using this facility, consumers can enter their laptop model and find a compatible battery. The system also finds the locations nearest to them where such batteries are available at exclusive ASUS outlets and channel partners. Consumers can even contact ASUS’s authorized service centers for assistance.



The battery replacement program supports many of ASUS’s most popular laptop series. Customers with Vivobook laptops can access genuine replacement batteries through the initiative. Several ROG gaming laptops are also part of the program. ASUS has further expanded coverage to include ExpertBook, ProArt, and TUF models. The Battery Finder platform helps users confirm compatibility before visiting a store or service center.



ASUS Strengthens Its After-Sales Support Network 



As part of enhancing its customer support services, ASUS has extended its post-sale service network in various parts of India. This has included areas such as Delhi-NCR, Uttar Pradesh, Uttarakhand, Maharashtra, Karnataka, Tamil Nadu, Kerala, Gujarat, Punjab, and others. ASUS has made this service available as part of its Assurance Program. The organization’s main aim is to provide reliable and effective service, warranties, and an enhanced customer experience.



Apart from increasing the number of battery sources, ASUS is also working to help consumers manage their batteries effectively. Consumers are advised on how to charge their laptop batteries to ensure that their performance remains high. ASUS also highlights the need to control laptop temperature and have devices serviced regularly.

#ASUS #Expands #Access #Genuine #Laptop #Battery #Replacements #IndiaAsus

microsite that will make laptop battery replacement easy for its customers. Using this facility, consumers can enter their laptop model and find a compatible battery. The system also finds the locations nearest to them where such batteries are available at exclusive ASUS outlets and channel partners. Consumers can even contact ASUS’s authorized service centers for assistance.

The battery replacement program supports many of ASUS’s most popular laptop series. Customers with Vivobook laptops can access genuine replacement batteries through the initiative. Several ROG gaming laptops are also part of the program. ASUS has further expanded coverage to include ExpertBook, ProArt, and TUF models. The Battery Finder platform helps users confirm compatibility before visiting a store or service center.

ASUS Strengthens Its After-Sales Support Network

As part of enhancing its customer support services, ASUS has extended its post-sale service network in various parts of India. This has included areas such as Delhi-NCR, Uttar Pradesh, Uttarakhand, Maharashtra, Karnataka, Tamil Nadu, Kerala, Gujarat, Punjab, and others. ASUS has made this service available as part of its Assurance Program. The organization’s main aim is to provide reliable and effective service, warranties, and an enhanced customer experience.

Apart from increasing the number of battery sources, ASUS is also working to help consumers manage their batteries effectively. Consumers are advised on how to charge their laptop batteries to ensure that their performance remains high. ASUS also highlights the need to control laptop temperature and have devices serviced regularly.

#ASUS #Expands #Access #Genuine #Laptop #Battery #Replacements #IndiaAsus">ASUS Expands Access to Genuine Laptop Battery Replacements Across India

ASUS has introduced a new initiative to make genuine laptop battery replacements easier for customers across India. Through this initiative, customers can now replace their laptop batteries with ease and get proper service and warranty advantages in the process. Rather than opting for risky third-party alternatives, customers can now purchase official ASUS batteries. This initiative covers not only regular laptops but also gaming laptops.

Battery Finder Tool Simplifies the Replacement Process

ASUS Expands Access to Genuine Laptop Battery Replacements Across India
	
ASUS has introduced a new initiative to make genuine laptop battery replacements easier for customers across India. Through this initiative, customers can now replace their laptop batteries with ease and get proper service and warranty advantages in the process. Rather than opting for risky third-party alternatives, customers can now purchase official ASUS batteries. This initiative covers not only regular laptops but also gaming laptops.



Battery Finder Tool Simplifies the Replacement Process







ASUS has launched a Battery Finder microsite that will make laptop battery replacement easy for its customers. Using this facility, consumers can enter their laptop model and find a compatible battery. The system also finds the locations nearest to them where such batteries are available at exclusive ASUS outlets and channel partners. Consumers can even contact ASUS’s authorized service centers for assistance.



The battery replacement program supports many of ASUS’s most popular laptop series. Customers with Vivobook laptops can access genuine replacement batteries through the initiative. Several ROG gaming laptops are also part of the program. ASUS has further expanded coverage to include ExpertBook, ProArt, and TUF models. The Battery Finder platform helps users confirm compatibility before visiting a store or service center.



ASUS Strengthens Its After-Sales Support Network 



As part of enhancing its customer support services, ASUS has extended its post-sale service network in various parts of India. This has included areas such as Delhi-NCR, Uttar Pradesh, Uttarakhand, Maharashtra, Karnataka, Tamil Nadu, Kerala, Gujarat, Punjab, and others. ASUS has made this service available as part of its Assurance Program. The organization’s main aim is to provide reliable and effective service, warranties, and an enhanced customer experience.



Apart from increasing the number of battery sources, ASUS is also working to help consumers manage their batteries effectively. Consumers are advised on how to charge their laptop batteries to ensure that their performance remains high. ASUS also highlights the need to control laptop temperature and have devices serviced regularly.

#ASUS #Expands #Access #Genuine #Laptop #Battery #Replacements #IndiaAsus

ASUS has launched a Battery Finder microsite that will make laptop battery replacement easy for its customers. Using this facility, consumers can enter their laptop model and find a compatible battery. The system also finds the locations nearest to them where such batteries are available at exclusive ASUS outlets and channel partners. Consumers can even contact ASUS’s authorized service centers for assistance.

The battery replacement program supports many of ASUS’s most popular laptop series. Customers with Vivobook laptops can access genuine replacement batteries through the initiative. Several ROG gaming laptops are also part of the program. ASUS has further expanded coverage to include ExpertBook, ProArt, and TUF models. The Battery Finder platform helps users confirm compatibility before visiting a store or service center.

ASUS Strengthens Its After-Sales Support Network

As part of enhancing its customer support services, ASUS has extended its post-sale service network in various parts of India. This has included areas such as Delhi-NCR, Uttar Pradesh, Uttarakhand, Maharashtra, Karnataka, Tamil Nadu, Kerala, Gujarat, Punjab, and others. ASUS has made this service available as part of its Assurance Program. The organization’s main aim is to provide reliable and effective service, warranties, and an enhanced customer experience.

Apart from increasing the number of battery sources, ASUS is also working to help consumers manage their batteries effectively. Consumers are advised on how to charge their laptop batteries to ensure that their performance remains high. ASUS also highlights the need to control laptop temperature and have devices serviced regularly.

#ASUS #Expands #Access #Genuine #Laptop #Battery #Replacements #IndiaAsus

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