Sequoia Capital to Split into Three Different VC Firms
- Sequoia Capital has invested in a couple of crypto firms, including FTX.
- The company cited growing complexity as part of the reason for this change.
Sequoia Capital, one of the world’s biggest venture capital firms, informed investors on Tuesday morning that it would split its global operations into three different regions, separating its Sequoia China venture from the well-known Europe and U.S. partnership.
Following the change, the U.S. division will focus on projects based in North America. Another branch of the firm will cater to projects in China, while the final division will concentrate on India and other Asian markets.
Sequoia partners Roelof Botha, Neil Shen, and Shailendra Singh shared the update in a joint message. Shen and Singh will oversee Sequoia’s operations in China and Southeast Asia, respectively. Botha is the managing partner for the company’s operations in the United States and Europe. Sequoia stated that the division will be completed within the first quarter of 2024.
The VC firm said the decision was reached to decentralize its back-office operations. In a Twitter post, Sequoia said it plans to adopt a “local-first approach.” The company added that the decision to split its operations was influenced by increased complexity in the global financial space and growing brand confusion.
The company’s executives wrote in a message,
It has become increasingly complex to run a decentralized investment business. We’ve seen growing market confusion due to the shared Sequoia brand as well as portfolio conflicts across entities.
Sequoia has a proven reputation for identifying emerging tech companies to invest in over the years. The VC firm made early investments in companies such as YouTube, Bitclout, Airbnb, Google, Cisco, Nvidia, Stripe, and WhatsApp. Interestingly, Sequoia invested $213.5 million into FTX in 2021. The crypto exchange reportedly generated $1 billion in revenue in 2021 and collapsed a year later.
As part of its update, Sequoia’s operations in the United States and Europe will carry on under the Sequoia brand, while those in India and Southeast Asia will adopt the name “Peak XV Partners.” The company’s China branch will continue to go by its Chinese name and will be known as “HongShan” in English.
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