Sequoia Capital Splits Into Three Different Entities The investors clarified in a joint statement that, each business will serve the founders and ecosystem where they operate with flexibility that comes with an independent brand
By Teena Jose
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Venture capital firm Sequoia Capital has announced that it is splitting into three entities focused on geographies including the United States, China, India and South East Asia, citing an "increasingly complex" dynamic. In an official business update released by the VC, it is said that the strategies for each business diverged and that its scale and market leadership across different geographies had started to result in brand confusion and portfolio conflict compelling the VC fund to split into three independent funds.
Sequoia partners Roelof Botha, Neil Shen, and Shailendra Singh delivered the update to their limited partners via a joint message. Botha is managing partner for Sequoia's U.S. and Europe business, while Shen and Singh run Sequoia's China and Southeast Asia businesses, respectively.
"Our firm will continue to be managed by the present leadership team and will continue to invest from the most recently raised set of funds focused on India and SEA," said Shailendra Singh, managing director, Sequoia Capital India and SEA, in the statement.
The update further revealed that the US and Europe-focused fund will continue to function under the existing Sequoia Capital branding, while the China fund will be rebranded as HongSham. Roelof Botha will head the US fund, Neil Shen will head the Chian fund and Shailendra Singh will continue to head the India fund.
Moreover, the statement added that, in terms of funding strategy, Peak XV Partners will continue to focus on its existing sectors, including SaaS, AI, developer tools, cyber security, cloud infrastructure, fintech, climate tech, healthtech and consumer. The fund also added that it will double down on startup programs like Surge and Spark.
"To deliver on our mission, we have decided to fully embrace our local-first approach. The move will be completed no later than March 31, 2024," the three partners told their investors.
Furthermore, the investors clarified in the joint statement that, "Each business will serve the founders and ecosystem where they operate with flexibility that comes with an independent brand. Also, we will host a limited partner call in the coming days."
