Sequoia Capital wants to win back investors amid rocky 2023: report

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Sequoia Capital is looking to win back investors after undergoing major changes this year, according to a Financial Times report.

One of these changes was triggered by the crash of cryptocurrency exchange FTX in November 2022. Sequoia Capital, which had injected US$225 million in the failed platform, slashed a US$585 million crypto investment fund to US$200 million. The VC firm also faced multiple partner exits, including that of celebrated investor Michael Moritz.

Earlier this year, Sequoia Capital announced its decision to spin off into three entities. Sequoia India and Southeast Asia was rebranded to Peak XV Partners, while the company’s China business was renamed HongShan. The Sequoia Capital name was retained for its US- and Europe-focused entity.

According to the Financial Times, top executives are working to assure limited partners that Sequoia Capital has strengthened its ties with founders and is well-placed to capture the AI boom.

The VC firm was founded in 1972 in Silicon Valley and has backed tech giants such as Apple, Airbnb, and Zoom. In the mid-2000s, it expanded overseas by setting up funds in China and India. As of 2022, Sequoia Capital had approximately US$85 billion in assets under management.

Over the last 17 years, Sequoia India and Southeast Asia has raised 13 funds to invest in 400 startups. Out of that number, more than 50 startups have been valued at more than US$1 billion.

See also: Recession Run: Sequoia’s $850m plan during a downturn