The decision by Sequoia is said to have been triggered by the escalating tensions between the US and China.

In response to the increasingly complex geopolitical landscape and escalating tensions between Beijing and Washington, venture-capital giant Sequoia plans to separate its China and other Asia operations from its U.S. business.

Sequoia aims to become three distinct firms with separate brands by March 2024, as stated in a communication to investors on Tuesday. The U.S. and Europe venture-capital business will retain the name Sequoia Capital, while Sequoia China will adopt the name HongShan, which it is currently known as in Mandarin. In India and Southeast Asia, the firm will operate under the name Peak XV Partners. (Wall Street Journal)

As part of this restructuring, the three units will no longer share back-office functions like IT, finance, and accounting.

“It has become increasingly complex to run a decentralized global investment business,” Sequoia said in a press release issued by regional heads Roelof Botha, Neil Shen and Shailendra Singh. “This has made using centralized back-office functions more of a hindrance than an advantage.”

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