🚨Breaking news: Global venture capital behemoth Sequoia Capital is splitting into 3 VC firms! Here’s what you need to know..
→ US/Europe will remain Sequoia Capital
→ China will become HongShan
→ India will become Peak XV
🕵️♀️But why the sudden change?
🎤Forbes interviewed the managing partners: Roelof Botha (US/Europe), Neil Shen (China) & Shailendra J Singh (India) to get to the bottom of it…
👉🏽And…they suggest *conflict* between broadening portfolios was a greater catalyst for the move than geopolitical tensions (but some may argue otherwise!)
🤺For example Stripe (a Sequoia US investment) competes with Airwallex (a Sequoia China investment)
🌎In a world where remote work has blurred geographical boundaries — Chinese & Indian companies are increasingly trying to service a global market (and take advantage of the cost arbitrage!)
😳Botha recounted an “awkward” story of a U.S. based Sequoia portfolio company complaining that an Indian-based rival backed by Sequoia’s team there was telling prospective customers it was the firm’s big bet in the category!
😡 Singh expressed the same frustration noting that a prominent U.S. tech company complained to its Sequoia partner in the U.S. about a Sequoia India investment that it believed would be competitive in the future!
(*Sequoia India has since cashed out, without the US unicorn ever launching a rival tool in the end! How frustrating).
👉🏽As we witness an AI boom the partners anticipated potential clashes in the future
😳 For example, Sequoia is an investor in OpenAI via its US fund.
🫣Singh mentioned how not being able to invest in AI businesses in India because of a US conflict would be “debilitating”
💸Another reason for the split is that the fundraises for the latest funds ($2.85bn (India/SEA) & $9bn (China)) were largely independent & strategies are beginning to diverge…
👉🏽The US doubled down on early stage investing with China prioritising non-tech investing including infrastructure & public equities!
🔎It’s worth noting Sequoia’s other independent businesses, Sequoia Heritage (an endowment-style family office) & Sequoia Capital Global Equities (a public/private crossover firm) will remain the same.
🤝Botha says that he hopes the firms will consider each other *cousins* with a shared heritage, even though they’ll no longer have a special relationship.
🙋♀️What are your thoughts on the decision ? Will other global firms follow suit? Drop your thoughts in comments.
Link to Alex Konrad’s breaking news piece in comments👇
#venturecapital #startups #angelinvesting #investing #technology #tech #innovation #startupstrategies #leanstartups #india #china
→ US/Europe will remain Sequoia Capital
→ China will become HongShan
→ India will become Peak XV
🕵️♀️But why the sudden change?
🎤Forbes interviewed the managing partners: Roelof Botha (US/Europe), Neil Shen (China) & Shailendra J Singh (India) to get to the bottom of it…
👉🏽And…they suggest *conflict* between broadening portfolios was a greater catalyst for the move than geopolitical tensions (but some may argue otherwise!)
🤺For example Stripe (a Sequoia US investment) competes with Airwallex (a Sequoia China investment)
🌎In a world where remote work has blurred geographical boundaries — Chinese & Indian companies are increasingly trying to service a global market (and take advantage of the cost arbitrage!)
😳Botha recounted an “awkward” story of a U.S. based Sequoia portfolio company complaining that an Indian-based rival backed by Sequoia’s team there was telling prospective customers it was the firm’s big bet in the category!
😡 Singh expressed the same frustration noting that a prominent U.S. tech company complained to its Sequoia partner in the U.S. about a Sequoia India investment that it believed would be competitive in the future!
(*Sequoia India has since cashed out, without the US unicorn ever launching a rival tool in the end! How frustrating).
👉🏽As we witness an AI boom the partners anticipated potential clashes in the future
😳 For example, Sequoia is an investor in OpenAI via its US fund.
🫣Singh mentioned how not being able to invest in AI businesses in India because of a US conflict would be “debilitating”
💸Another reason for the split is that the fundraises for the latest funds ($2.85bn (India/SEA) & $9bn (China)) were largely independent & strategies are beginning to diverge…
👉🏽The US doubled down on early stage investing with China prioritising non-tech investing including infrastructure & public equities!
🔎It’s worth noting Sequoia’s other independent businesses, Sequoia Heritage (an endowment-style family office) & Sequoia Capital Global Equities (a public/private crossover firm) will remain the same.
🤝Botha says that he hopes the firms will consider each other *cousins* with a shared heritage, even though they’ll no longer have a special relationship.
🙋♀️What are your thoughts on the decision ? Will other global firms follow suit? Drop your thoughts in comments.
Link to Alex Konrad’s breaking news piece in comments👇
#venturecapital #startups #angelinvesting #investing #technology #tech #innovation #startupstrategies #leanstartups #india #china
