Sequoia Capital, the venture capital firm, recently announced an impending split that will allow the company to break into three different partnerships that serve China, the United States, as well as Asian markets separately. This move, which was announced on the 6th of June, will be intended to decentralize the functions of the back-office for the company.
The move also cited growing brand confusion and increasing global financial complexity, and the company mentioned that it was intending to embrace its local-first approach. The change will see the branch in the United States remain quite focused on the endeavors based in North America, while a second brand will be serving in China, with the third handling India and other Asian markets.
Sequoia Capital Is Looking To Split Three Ways
Sequoia Capital, which is one of the world’s largest venture capital firms by assets under total capitalization and management, came to prominence in the 70s. The first major investment of this investment firm came after its formation was made in Atari in 1975, just a few years before the firm ended up being one of the initial investors of Apple in 1978. Over the last few years, the venture firm has had quite a major knack for finding tech darlings in order to invest in it. The portfolio also includes early investments in Cisco, Google, Nvidia, Airbnb, YouTube, Stripe, WhatsApp, and BitClout.
Sequoia Capital recently invested around $213.5 million in FTX 2021, a year before the company posted a sum of $1 billion as revenue. Unfortunately, FTX did go on to collapse in November 2022, causing a peak realized loss of $9 billion which started on 7th November.