7 June 2023

Sequoia venture capital fund separates China and India operations from U.S. parent company

Amid escalating tensions between Washington and Beijing, venture capital giant Sequoia Capital has decided to split its business into three entities: China, India and Southeast Asia, and the US and Europe.

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The decision to split the business represents the culmination of one of the most successful investment partnerships between the United States and China. Sequoia China, which was formed as a subsidiary of Sequoia Capital in 2005, has not only benefited its U.S. headquarters, but also played a key role in cultivating several generations of Chinese technology businesses. Sequoia Capital manages more than $53 billion in assets in the United States and Europe, $56 billion in China, and $9 billion in India and Southeast Asia. It is worth noting that the firm's operations in the United States and Europe have generated impressive returns of more than US$30 billion over the past five years. Sequoia Capital is known for its early investments in globally successful US companies such as Google, Apple, Airbnb, among many others.

Since its founding in China in 2005, Sequoia China has been a key player in the rapid and highly profitable rise of Chinese technology giants. The firm has invested heavily in renowned companies such as ByteDance, the parent company of popular video app TikTok, as well as fintech company Ant Group and fast fashion retailer Shein. Sequoia China's portfolio includes more than 1,000 companies in China in emerging technology sectors such as electric vehicles and biotechnology.

It is anticipated that the official allocation will be fully implemented by the end of this year. In addition, policymakers in Washington are expected to continue their efforts to further limit technological ties between the United States and China in the coming months.