Sequoia is now three separate venture capital firms. The world’s most prestigious and well-known global venture capital firm has decided to split apart.
Sequoia, which is famous for its early investments in American technology businesses such as Airbnb, WhatsApp, and Zoom in the United States, as well as international heavyweights such as ByteDance and GoTo via its China and India funds, is currently in the process of breaking into three completely separate corporations.
Sequoia’s global leadership confirmed the information in a letter to limited partners sent out on Tuesday morning. The message was signed by Roelof Botha, Neil Shen, and Shailendra Singh, the leaders of the three firms. The three companies emerging from the separation hope to finish it by March 2024. Sequoia Capital will represent the United States and Europe, HongShan will operate in China, and Peak XV Partners will focus on India and Southeast Asia.
The three investment heads gave separate interviews to Forbes. They stated that the decision to split up Sequoia’s worldwide brand had been discussed gradually but had become more intense over the past few months. They acknowledged but attempted to minimize the reality that the geopolitical environment has become more frosty.
They highlighted competition between the different funds’ startup portfolios, brand confusion due to the divergence in strategies, and the rising complexity of maintaining centralized regulatory compliance as factors. In addition, they cited brand confusion due to the variation in design.
Botha stated that it appeared like things were heading in a path where they would become more difficult rather than easier. “This is not a surrender in which we are saying, ‘White flag, we failed.'” It is more of a win because we now have these completely independent firms capable of going even higher.