Sequoia Capital Splits Into Three Branches Serving US, China, and Asia7. June 2023
• Sequoia Capital, one of the world’s largest venture capital firms, announced it will split into three branches serving the U.S., China, and Asian markets.
• The move is intended to decentralize back-office functions for the company and embrace its “local-first approach.”
• Sequoia has a long history of investing in tech giants like Apple, Google, Cisco, Nvidia, YouTube, Airbnb, WhatsApp, Stripe and BitClout.
Sequoia Capital Splits Into Three Branches
Venture capital firm Sequoia Capital announced on June 6th that it will split into three distinct partnerships serving the United States, China, and Asian markets separately. The move is intended to decentralize back-office functions for the company and embrace its “local-first approach.”
Background On Sequoia Capital
Sequoia is one of the world’s largest venture capital firms by assets under management and total capitalization. It came to prominence in the 1970s when it made an initial investment in Atari in 1975 followed by an investment in Apple two years later. Over the years they have invested in many tech giants such as Google, Cisco, Nvidia, YouTube etc., as well as smaller start-ups such as FTX which posted $1 billion in revenue before collapsing in November 2022.
Intended Effects Of Split
The U.S. branch will remain focused on North America-based endeavors while a second branch will serve China and a third will handle India and other Asian markets. This change is intended to reduce brand confusion by allowing each branch to focus more closely on their respective locales while also making financial operations more efficient due to increased global complexity.
Rising Tensions Between U.S & China
The split comes at a tumultuous time for relations between the U.S & China after footage was released of a Chinese destroyer buzzing a US warship on June 3rd which caused further tensions between both nations .
Despite recent events related to FTX 2021 , Sequoia holds a $13.6 billion primary fund with its clients portfolios worth around $85 billion . With this new split , they hope to continue their successful investments while creating greater efficiency within their organization overall .