The move will help each business to build teams that have an intimate understanding of their local networks and industries. Venture capital (VC) firm Sequoia Capital has revealed its plans to split up into three distinct businesses. According to the announcement, the new businesses will focus on serving the United States, China, and the Asian markets, albeit separately. Sequoia Capital Cites Reasons for Upcoming Split Sequoia announced plans for the three-way split on Tuesday, sharing numerous reasons behind the decision. One of those is to decentralize the backend operations of the company. The move, according to a Twitter post, also seeks to address Sequoia’s growing brand confusion. But most importantly, it is a decision that has put into consideration the increasing complexities
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The move will help each business to build teams that have an intimate understanding of their local networks and industries.
Venture capital (VC) firm Sequoia Capital has revealed its plans to split up into three distinct businesses. According to the announcement, the new businesses will focus on serving the United States, China, and the Asian markets, albeit separately.
Sequoia Capital Cites Reasons for Upcoming Split
Sequoia announced plans for the three-way split on Tuesday, sharing numerous reasons behind the decision. One of those is to decentralize the backend operations of the company.
The move, according to a Twitter post, also seeks to address Sequoia’s growing brand confusion. But most importantly, it is a decision that has put into consideration the increasing complexities of global financing.
Therefore, each localized business will focus on its jurisdiction in the delivery of its services. The company believes that this move will greatly help each business to build teams that have an “intimate understanding of their local networks and industries”.
So, ultimately, the split spells that the US branch will continue to focus on North America-based dealings, while the Chinese branch serves China, and the India/SEA focuses on India and other Asian markets.
US/China Relationship in View
Meanwhile, it might be worth mentioning that the Sequoia split is coming at a time when the relationship between China and the US appears to be at its lowest. Recently, tensions rose between both sides when the US military released a clip on June 3. The clip showed a Chinese destroyer that nearly collided with a US warship. CNN later reported that China claims there was a ‘provocation’ on the part of the US leading to the incident.
The most recent event is one of many events that have occurred in 2023. Recall the Chinese surveillance balloon that was discovered in February and also the close fly-by of a Chinese jet in May. These events continue to put a strain on the already edgy US/Chinese relationship.
But it remains unclear whether or not Sequoia’s impending split has anything to do with the relationship that is growing sour. Nonetheless, however, US and European arms will continue to operate under the Sequoia banner. The Chinese branch will retain its Chinese name which is translated to “HongShan” in the English language. And lastly, the India and Southeast Asia arm will take up a new name and rebrand to “Peak XV Partners”.
According to Sequoia Capital, all changes are expected to have taken effect by March 31, 2024.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.