Venture capital firm Sequoia announced its plan to split into three separate partnerships serving the United States, China, and Asian markets individually. The announcement was made on June 6, with the aim of decentralizing back office functions for Sequoia. The firm cited brand confusion and increased global financial complexity as reasons for embracing its “local first approach”.
Here is the global business update we shared with our LPs. pic.twitter.com/lGHIw1tVE5
— Sequoia Capital (@sequoia) June 6, 2023
The restructuring will see the existing U.S. branch continue to focus on North America-based endeavors while the second partnership will serve China, and the third partnership will handle India and other Asian markets. Sequoia is one of the largest venture capital firms in the world in terms of assets under management and total capitalization. Known for finding tech darlings to invest in Sequoia has early investments in Google, Cisco, Nvidia, YouTube, AirBnB, WhatsApp, Stripe, and BitClout.
Despite the recent collapse of FTX, Sequoia holds a $13.6 billion primary fund and currently manages a portfolio worth around $85 billion for its clients. The split comes at a difficult time for Sino-US relations, with tensions rising after a recent military incident between the two countries.
Yesterday, we shot exclusive footage from HMCS Montreal, of a Chinese warship cutting off USS Chung-Hoon, coming within 150 yards of hitting the destroyer, a move the Commander of the Montreal called “intentional” & “unprofessional”
— Mackenzie Gray (@Gray_Mackenzie) June 4, 2023
The U.S.–Chinese relationship has been tense in recent times over a series of similar incidents, and Sequoia will rebrand its India and Southeast Asia arm to Peak XV Partners while the China branch will retain its Chinese-language name and will be called HongShan in English. The restructuring will be finalized by March 31, 2024.