Letter to the Founders of Sequoia China Member Companies

Dear Founders of Sequoia China Member Companies,

We are writing to you today to explain a significant decision made by Sequoia Global: each of the three major regions (the USA and Europe, China, and India/Southeast Asia) will achieve complete independence before March 31, 2024. As an important member of Sequoia China’s investment ecosystem, we are writing to you specifically to explain the rationale behind this decision.

Since its inception, Sequoia’s mission has been to work with exceptional founders, helping them to create lasting and great businesses. For over 50 years, this mission has driven us to not rest on our laurels, to focus on the long-term, and to continually innovate. This commitment to continuous optimization and change has enabled us to serve entrepreneurs for decades, support our member companies’ growth, and deliver outsized returns to our LPs.

18 years ago, we saw entrepreneurs emerging around the world who were building the next generation of industry-leading companies. To create and win more opportunities in emerging markets, Sequoia China and Sequoia India/Southeast Asia were established. Sequoia adopted a unique and unconventional operating model at the time, establishing teams rooted in local markets and ecosystems in each region, with independent ownership and investment decision-making in each region. In the early stages of development, Sequoia shared best practices across regions and helped to lay a solid foundation, while selectively centralizing some back-office functions globally to ensure consistency in these operations across regions.

Building local investment teams, focusing on serving local entrepreneurs, and prioritizing local needs have been key elements of Sequoia’s success in different regions around the world. Today, Sequoia’s business entities and teams in each region have become leaders in their local markets. In the process of development, Sequoia China’s investment focus has become broader and more diverse, including not only the technology industry, but also the medical and health and traditional consumer sectors, two areas that are less explored by the other two regions. In addition, Sequoia China has also established a New Infrastructure Fund to invest in the infrastructure of China’s new economy and has begun to develop M&A investments in recent years – all of which are unique to Sequoia China. Sequoia India/Southeast Asia and Sequoia USA and Europe have also developed unique operating models and business structures that are more tailored to their respective local markets.

Meanwhile, managing and operating a decentralized global investment business has become increasingly complex and challenging. For example, the deeper localization development in the regions mentioned above has made the global centralized operation mode of some back-office functions gradually become a burden rather than an advantage. In addition, as the companies invested by Sequoia in different regions become internationalized and compete for industry leadership globally, there are inevitably some mutual competition among them, and the shared brand of Sequoia in various regions has brought some troubles to these founders and member companies.

Faced with these complexities, we need to further embrace a local-first strategy to achieve our mission in each region and maintain sustained leadership. Therefore, Sequoia Global has decided that by March 31, 2024, each region will be completely independent and operate under different brands: Sequoia China will continue to use the “Sequoia” Chinese brand name and adopt a new English brand name “HongShan”, Sequoia US/Europe will continue to use the “Sequoia Capital” brand name, while Sequoia India/SEA will use the new brand name “Peak XV Blockingrtners”. We believe that the flexibility brought by different brands can create more value for founders and LPs served by each region.

Time waits for no one, and the seasons flow like a river. In the midst of change, there are also unchanging ways. All members of Sequoia China will continue to be committed to being the “entrepreneur behind the entrepreneur” and providing comprehensive support and assistance to founders. We will continue to work with you to pursue our dreams and make progress, injecting more vitality and momentum into China’s entrepreneurship and innovation!

Sequoia China Team

June 6, 2023

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