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VC giant Sequoia to split into three

Sequoia, the giant global venture capital firm known for early investment in a host of now leading tech companies including Google, Instagram, Airbnb, WhatsApp, Zoom, ByteDance and GoTo, is breaking itself up into three distinct firms, according to a report by Bloomberg.

Sequoia, the giant global venture capital firm known for early investment in a host of now leading tech companies including Google, Instagram, Airbnb, WhatsApp, Zoom, ByteDance and GoTo, is breaking itself up into three distinct firms, according to a report by Bloomberg.

The report cites geopolitical tensions between the US and China as one of the major factors in the decision to restructure the business, as well as conflict between the funds’ respective startup portfolios, brand confusion as they diverged in strategies, and increasing complexity of maintaining centralised regulatory compliance.

Sequoia’s global leadership team confirmed the news in a letter to limited partners on Tuesday morning signed by the leaders of the three new firms, Roelof Botha, Neil Shen and Shailendra Singh. Botha will head up Sequoia Capital representing the US and Europe, Shen will lead HongShan in China, while Singh will take charge of Peak XV Partners in India and Southeast Asia.

The plan is for the separation to be completed “no later than” March 2024.

Moving forward, the new firms will set up their own infrastructure, and partners will not invest in each other’s funds. Any profit sharing (as well as back-office functions) between the regional funds will cease by 31 December. 

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