Sequoia, the renowned global venture capital firm, is undergoing a major restructuring. The firm, known for its early investments in successful U.S. tech companies like Airbnb, WhatsApp, and Zoom, as well as prominent international players like ByteDance and GoTo, is dividing itself into three separate entities.
In a letter addressed to limited partners, Sequoia’s global leadership, including Roelof Botha, Neil Shen, and Shailendra Singh, confirmed the decision to split. The resulting firms will be Sequoia Capital for the U.S. and Europe, HongShan for China, and Peak XV Partners for India and Southeast Asia. The separation is expected to be finalized by March 2024.
In interviews with Forbes, the leaders explained that the idea to split had been under discussion for some time and gained momentum in recent months. They mentioned conflicts between the different funds’ startup portfolios, confusion arising from divergent strategies, and the growing complexity of maintaining centralized regulatory compliance. While acknowledging the challenging geopolitical landscape, they emphasized that the decision was not a retreat but rather a strategic move to enable the fully independent businesses to thrive.
“This is not admitting defeat; it’s a victory because we now have fully autonomous entities that can go even further,” stated Botha.
Founded in 1972 with a modest $3 million fund, Sequoia Ventures became a prominent player in Silicon Valley’s tech scene through its early investments in companies like Apple, Cisco, Google, and Nvidia. Over the years, the firm expanded globally, establishing funds in China and India, which developed into significant regional powerhouses. While Sequoia’s U.S. business achieved success with companies such as Airbnb, DoorDash, Snowflake, WhatsApp, and Zoom, Sequoia China had its own notable portfolio including Alibaba, Meituan, and ByteDance, the parent company of TikTok. Similarly, the India and Southeast Asia funds had successful investments in Byju’s, GoTo, and Zomato. Despite operating independently, the regional funds shared back-office functions and infrastructure.
