US-based investment fund Sequoia Capital has declared plans to reorganize its business into three distinct units, effective from March 2024. This strategic move includes the establishment of a separate China unit to be renamed Hongshan, an India/South-east Asia unit, and the US/Europe division which will retain the Sequoia Capital name.
Rationale Behind the Rearrangement
The decision to split the business has been attributed to escalating economic and geopolitical challenges that impact fundraising and investments. According to a statement from the company, “It has become increasingly complex to run a decentralized global investment business. This has made using centralized back-office functions more of a hindrance than an advantage.” Previously, Sequoia China, founded by Neil Shen in 2005, and Sequoia India operated semi-independently, sharing a portion of their profits across the group globally—a practice that will cease with the new structure.
Sequoia’s Impact on Tech and Healthcare Investments
Sequoia Capital has been a pioneer in investing in several major Chinese tech companies, including Alibaba and ByteDance. The firm has also been highly active in the healthcare sector. Fineline Info & Tech data shows that Sequoia has made over 300 investments in China’s healthcare space, including notable companies such as Dizal Pharmaceuticals, Zai Lab, BGI, and XtalPi. In 2023 alone, Sequoia has participated in at least 6 venture capital rounds targeting China-based firms focusing on surgical robotics, gene therapies, mRNA drug development, and more.-Fineline Info & Tech
