Sequoia Capital, one of the world’s largest venture firms, has announced that it will be dividing its global partnership into three separate and independent geographic units. The move is aimed at dealing with an “increasingly complex” dynamic that the firm is facing.
Local-First Approach
According to a joint message delivered to investors by Sequoia partners Roelof Botha, Neil Shen, and Shailendra Singh, the firm will fully embrace a local-first approach. Botha is the managing partner for Sequoia’s U.S. and Europe business, while Shen and Singh run Sequoia’s China and Southeast Asia businesses, respectively.
New Names for Units
The move, which will be completed no later than March 31, 2024, will see the U.S. firm retain the Sequoia branding. Shen’s Chinese fund, which has been seen as an independent entity even before the move, will take the name HongShan in English. Meanwhile, Singh’s Indian unit will be called Peak XV Partners.
Reasons for the Decision
The executives wrote in their message to investors that it has become “increasingly complex” to run a decentralized investment business. They cited “growing market confusion” due to the shared Sequoia brand as well as portfolio conflicts across entities. Sequoia is one of the world’s top venture funds, with notable investments in Apple, Google, Paypal, and Zoom.
The move by Sequoia Capital to divide its global partnership into three separate units reflects the increasing complexity of the investment market. The firm’s decision to fully embrace a local-first approach is aimed at ensuring that it remains competitive in different regions. The announcement of new names for the units is expected to reduce confusion for investors and portfolio conflicts across entities. The move is expected to be completed by March 31, 2024.
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