Global venture capital giant Sequoia announced on June 5 that it is planning to separate US, China and India- Southeast Asia businesses into independent firms.
Sequoia said the China and India and Southeast Asia businesses will become completely independent partnerships and become distinct firms with separate brands no later than March 31, 2024, according to a statement signed by the firm's managing partners Roelof Botha, China head Neil Shen and India head Shailendra Singh.
The firm's US and Europe venture business will be Sequoia Capital, after the separation, it added. Sequoia's move to end its long-term partnership of local leaders in China, India and Southeast Asia comes amid macroeconomic and geopolitical challenges that have made fundraising difficult and impacting the venture funds' returns.
Sequoia was an umbrella brand for three already largely independent ventures: one focused on China, another on the US and Europe, and a third on India and Southeast Asia. The Sequoia China business will retain its existing name in Chinese and adopt the name HongShan in English. Sequoia India and Southeast Asia will become Peak XV Partners. At the same time, Sequoia Heritage and Sequoia Capital Global Equities will operate under the Sequoia banner.
Investing into China by global investors, in particular, has slowed down significantly as the world's second largest economy is grappled with economic woes post COVID-19 pandemic and tightened regulatory oversight that stymied growth in the technology and internet sectors.
Sequoia China will retain its current Chinese name and adopt the name HongShan in English, while Sequoia India and Southeast Asia will become Peak XV Partners, the firm said.
Sequoia Capital and its Beijing affiliate spent over a decade scattering billions across China’s multitude of startups, backing the likes of ByteDance Ltd. and JD.com Inc. while becoming a powerhouse brand among the venture firms trying to strike it rich there. It has expanded beyond early-stage investing into growth stage, infrastructure, healthcare and consumer, and buyout funds. Sequoia China manages about $56 billion asset under management.