Sequoia hits rewind, undoing 20 years of expansion
News Source
•Wed, 04 Nov 2026 17:11:15 +0000
📰 What Happened
Sequoia Capital has raised about $10 billion in new funds while shrinking its operations. It will close its London office and shut down its Arc accelerator and Scouts program.
The firm is also merging its early-stage and growth teams, flattening its partnership and ending the Monday partner meeting. It says 20 years of expansion created too much hierarchy.
Sequoia describes the change as a return to a smaller firm focused closely on Silicon Valley. Its memo, titled “The Sequoia of Tomorrow”, presents the cuts as a deliberate reset.
🔍 The Backstory
Sequoia backed Apple, Google, Nvidia and Airbnb, and is one of the most famous venture firms in the world. It expanded into China, India and Europe over two decades.
Scouts gave small cheques to founders and operators to invest on Sequoia's behalf. Jason Calacanis brought Uber to the firm through the program, and Sam Altman brought Stripe.
Venture funding has cooled since 2022, and many firms are cutting costs. Sequoia's move suggests even the biggest investors think the boom years of endless expansion are over.
🎯 Why It Matters
Venture firms decide which young companies get money. Fewer offices abroad may make it harder for founders outside the US to raise cash.
Sequoia Capital has raised about $10 billion in new funds while shrinking its operations. It will close its London office and shut down its Arc accelerator and Scouts program.
The firm is also merging its early-stage and growth teams, flattening its partnership and ending the Monday partner meeting. It says 20 years of expansion created too much hierarchy.
Sequoia describes the change as a return to a smaller firm focused closely on Silicon Valley. Its memo, titled “The Sequoia of Tomorrow”, presents the cuts as a deliberate reset.
Sequoia backed Apple, Google, Nvidia and Airbnb, and is one of the most famous venture firms in the world. It expanded into China, India and Europe over two decades.
Scouts gave small cheques to founders and operators to invest on Sequoia's behalf. Jason Calacanis brought Uber to the firm through the program, and Sam Altman brought Stripe.
Venture funding has cooled since 2022, and many firms are cutting costs. Sequoia's move suggests even the biggest investors think the boom years of endless expansion are over.
Venture firms decide which young companies get money. Fewer offices abroad may make it harder for founders outside the US to raise cash.