Introduction
What Is Sequoia Capital?
Sequoia Capital is a venture capital firm founded in 1972 by Don Valentine in Menlo Park, California. It’s widely regarded as one of the most successful and influential VC firms in the world.
With a portfolio that includes companies like Apple, Google, Airbnb, WhatsApp, and Stripe, Sequoia has built a reputation for spotting and scaling companies long before they become household names.
Why Sequoia Capital Matters
Sequoia is more than just a big name — it’s a driving force behind how modern startups are funded, mentored, and scaled. Here’s why it stands out:
- Track Record: Billions in returns from IPOs and acquisitions
- Founder-Focused: Long-term partnerships with entrepreneurs
- Global Reach: Active funds in the U.S., India, Southeast Asia, China, and Europe
- Venture Innovation: Creator of “The Sequoia Capital Fund” — a shift from traditional VC structures
Sequoia doesn’t just follow trends — it sets them.
What You’ll Learn in This Article
This article will take you inside the world of Sequoia Capital. You’ll learn:
- How it started and grew
- What makes its investment philosophy unique
- How its fund structure works
- How it operates globally
- Where it’s succeeded — and where it’s failed
- What’s next for one of the world’s most powerful VC firms
Whether you’re a startup founder, investor, or tech enthusiast, this article will help you understand how Sequoia Capital helped shape the startup world as we know it.
II. History & Origins
📆 Founded in 1972 by Don Valentine
Sequoia Capital was founded in 1972 by Don Valentine, a former marketing executive at Fairchild Semiconductor and National Semiconductor. At the time, Silicon Valley was still in its infancy — and venture capital was a niche, informal network.
Valentine saw a gap: engineers were building amazing products but didn’t understand how to bring them to market. His vision was simple — fund smart people solving big problems — and help them build lasting businesses.
“I was looking for outlandish people. I was looking for unreasonable people. I was looking for people who had a vision for how the world ought to be.” – Don Valentine
Early Bets That Shaped Tech History
Sequoia’s earliest investments laid the foundation for its legend. Some notable early moves:
- Atari (1975) – One of Sequoia’s first big bets, helping launch the video game industry.
- Apple (1978) – Valentine personally wrote a $150,000 check to Steve Jobs and Steve Wozniak. The rest is history.
- Oracle, Cisco, and Electronic Arts – Other early wins that cemented Sequoia’s reputation.
These early bets weren’t just successful — they helped define the personal computing era.
Evolution Across the Decades
1980s–1990s
Sequoia became synonymous with Silicon Valley growth. It backed software and hardware giants, including Cisco, Yahoo!, and Google (through a very early-stage investment in 1999).
2000s
During the dot-com bust, Sequoia kept investing aggressively and saw huge returns. It funded PayPal, YouTube, and LinkedIn — all companies that would reshape the internet economy.
2010s
The firm expanded its global presence. It launched Sequoia India and Sequoia China (which later became key players in their regions) and backed companies like WhatsApp, Airbnb, Stripe, and Zoom.
2020s and Beyond
Sequoia introduced The Sequoia Capital Fund in 2022 — a radical shift away from the traditional venture capital model (more on that in a later section). It also began rethinking its global structure, recently spinning off its China and India arms as independent entities.
⚡ At a Glance: Key Milestones
| Year | Milestone |
| 1972 | Sequoia Capital founded by Don Valentine |
| 1978 | Invested in Apple |
| 1999 | Invested in Google |
| 2005 | Sequoia India and China launched |
| 2022 | Introduced The Sequoia Capital Fund |
| 2023 | Sequoia restructures, spinning off China & India units |
III. Investment Philosophy
Stage-Focused, Not Trend-Chasing
Sequoia is best known for its focus on early-stage investing, but it doesn’t stop there. The firm invests across all stages — from seed rounds to growth capital — under a consistent philosophy:
“We don’t follow trends. We back founders who create them.”
Sequoia’s approach is to identify mission-driven founders early, then support them all the way to IPO and beyond. It sees itself as a long-term business partner, not just a source of funding.
What Sequoia Looks For in a Startup
Sequoia has a clear, disciplined lens when evaluating companies. Here’s what they prioritize:
- Exceptional founders with clarity, conviction, and grit
- Massive markets with room for breakout growth
- Product-market fit or the ability to get there fast
- Speed and execution above perfection
- A strong mission and clear vision
They’re known to dig deep into a startup’s DNA before investing — and once they’re in, they stay for the long haul.
Sector Preferences
While originally tech-focused, Sequoia has broadened its scope over time. Their portfolio spans:
- Consumer Internet – e.g., Airbnb, Instagram
- Enterprise Software – e.g., Snowflake, ServiceNow
- Fintech – e.g., Stripe, Nubank
- Healthcare & Biotech – e.g., Guardant Health
- AI, Web3, and frontier tech – recent areas of interest
They also tailor their investments to regional strengths — for example, mobile-first platforms in Southeast Asia or manufacturing tech in China.
Global Investment Strategy
Sequoia isn’t just a Silicon Valley firm anymore. It’s built a global presence through localized funds and teams that operate semi-independently in:
- United States
- India & Southeast Asia (now operating as Peak XV Partners)
- China (spun off as HongShan)
- Europe
Each region adapts Sequoia’s core principles to local market dynamics — but all follow the same founder-first model.
IV. Fund Structure
Traditional VC vs. The Sequoia Capital Fund
For most of its history, Sequoia Capital operated like a typical venture firm:
- Raise a fund
- Deploy capital over a few years
- Exit through IPOs or acquisitions
- Return capital to Limited Partners (LPs)
- Repeat the cycle
But in 2022, Sequoia broke that model.
They introduced The Sequoia Capital Fund, a perpetual investment vehicle — a structure more like a hedge fund or endowment than a traditional VC.
How the Sequoia Capital Fund Works
Here’s how it differs from the usual VC model:
| Traditional VC Fund | Sequoia Capital Fund |
| Closed-end (10-year cycle) | Open-ended, long-term structure |
| Forced to return capital after exits | Can hold public stocks indefinitely |
| Multiple funds to manage | Consolidated into one master fund |
| LPs commit per fund | LPs roll capital into a single, ongoing structure |
This allows Sequoia to stay invested in companies well after they go public, maximizing upside from long-term compounding (e.g., holding onto stocks like Google or Airbnb for decades instead of selling at IPO).
What’s Inside the Fund?
The Sequoia Capital Fund acts as a central holding vehicle. It owns:
- Stakes in early-stage companies through sub-funds
- Equity in mature companies (e.g., public stocks like Airbnb, Snowflake)
- Assets from prior Sequoia funds, gradually rolled in
Sub-funds for Seed, Venture, and Growth still exist — but they’re all tied to this master structure.
Why Sequoia Made the Shift
Sequoia’s leadership argued the traditional fund model forced premature selling of great companies. With this new model, they can:
- Avoid tax inefficiencies from forced exits
- Continue supporting founders post-IPO
- Offer LPs exposure to both private and public winners
- Create a more aligned, long-term partnership with investors and startups alike
The Trade-Offs
While innovative, this model isn’t without challenges:
- Less liquidity for LPs
- Complex structure to manage
- More like a hybrid asset manager than a pure VC
Still, Sequoia believes this is the future of venture capital — more patient, more flexible, and more founder-friendly.
V. Portfolio Highlights
Companies That Changed the World
Sequoia Capital isn’t just known for picking winners — it’s known for picking defining companies. Over the past five decades, Sequoia has backed startups that went on to reshape industries, dominate global markets, and become part of everyday life.
Some of their most iconic investments include:
- Apple – Invested in 1978, helping launch the personal computing revolution
- Google – Early investor in 1999; one of the best VC returns in history
- PayPal – Helped build the foundation for modern online payments
- YouTube – Backed the platform that defined video sharing
- Airbnb – Invested during a downturn when few believed in the model
- WhatsApp – Acquired by Facebook for $19 billion
- Stripe – One of the most valuable private fintech startups globally
- Zoom – A critical tool during the COVID-19 pandemic
- Nubank – A Brazilian fintech unicorn serving millions in Latin America
Unicorn Factory
Sequoia has backed more than 250 companies that reached $100M+ in value, and over 85 IPOs to date. Many of their unicorns turned into decacorns (companies worth $10B+), including:
- Snowflake
- DoorDash
- Instacart
- Robinhood
- Dropbox
This consistency in producing winners — across sectors and geographies — is a key reason why Sequoia is regarded as a category-defining investor.
Exit Track Record
Some of the firm’s biggest returns came from holding long and exiting at the right time:
| Company | Exit Type | Valuation at Exit |
| IPO (2004) | $23B | |
| Acquired by Facebook | $19B | |
| Snowflake | IPO (2020) | $70B+ |
| Airbnb | IPO (2020) | $100B+ |
| YouTube | Acquired by Google | $1.65B |
Their ability to identify outliers and stick with them has returned billions to their investors — and changed the face of global business.
A Global Footprint of Success
Sequoia’s impact isn’t limited to Silicon Valley. Their international arms have helped create local champions:
- India – Zomato, Freshworks, Byju’s
- China – Meituan, JD.com, ByteDance (TikTok)
- Southeast Asia – Gojek, Tokopedia (now GoTo)
While some of these regions now operate under different brand names (e.g., Peak XV Partners in India), the legacy of Sequoia’s global deal-making continues to influence the tech scene worldwide.
VI. Sequoia’s Global Reach
From Silicon Valley to the World
While Sequoia Capital was born in Menlo Park, California, it has long since outgrown its Silicon Valley roots. Starting in the early 2000s, the firm began building localized investment arms in key emerging markets. Today, its reach spans North America, Asia, and Europe, with teams that operate semi-independently but uphold the same founder-first philosophy.
“The best founders in the world can come from anywhere — and we want to be there when they do.” – Sequoia Partner
Key Regional Divisions
United States & Europe
- Headquarters of the original Sequoia Capital
- Focus on high-growth startups across tech, healthcare, fintech, AI, and more
- Recent focus areas: open-source software, Web3, and generative AI
- Notable investments: Google, Airbnb, Stripe, DoorDash, Snowflake
India & Southeast Asia (now Peak XV Partners)
- Launched in 2006
- Became Peak XV Partners in 2023 after Sequoia split its global brand
- Invested in more than 400 companies in the region
- Notable investments: Zomato, Byju’s, Razorpay, Gojek, Tokopedia, Flipkart
China (now HongShan)
- Established in 2005
- Spun off in 2023 and rebranded as HongShan
- Played a massive role in building China’s tech ecosystem
- Notable investments: ByteDance (TikTok), Meituan, JD.com, DJI
Why the Split?
In 2023, Sequoia announced that its global units — Sequoia Capital (US/Europe), Peak XV (India/SEA), and HongShan (China) — would separate into independent entities.
Reasons behind the split:
- Regulatory pressure due to rising US-China tensions
- Operational complexity managing vastly different markets
- Desire for regional independence and branding control
Despite the split, all three arms maintain the Sequoia legacy — deep founder support, long-term capital, and selective investing.
Global vs. Local Strategy
While the original Sequoia US office pioneered the playbook, its international arms localized the model:
| Region | Unique Adaptations |
| India/SEA | Mobile-first, consumer-heavy markets |
| China | Deep tech, AI, manufacturing, platform dominance |
| US/Europe | Scalable SaaS, global B2B, AI, biotech |
Each region developed its own specialties while sharing core values: support early, invest with conviction, and think decades ahead.
VII. Challenges & Criticism
Not Every Bet Is a Winner
Despite its elite status, Sequoia Capital is not immune to failure. Some of its investments have drawn public scrutiny or turned into high-profile disasters.
Notable Misses or Failures:
- FTX – Sequoia invested $213 million in the now-defunct crypto exchange. The fallout led to legal and reputational damage.
- WeWork – Though not a lead investor, Sequoia missed early warnings that eventually unraveled the company.
- Jawbone – Once a promising wearables startup, it burned through nearly $1 billion in funding and shut down.
- Evernote – Popular at first, but failed to scale effectively or adapt to changing user demands.
These examples highlight that even the best investors make wrong calls — especially in high-risk, early-stage environments.
Criticism of Over-Influence
Sequoia’s reputation gives it immense influence in the startup world. This has led to occasional criticism:
- Power dynamics – Founders may feel pressure to agree with Sequoia’s vision or terms, given its stature.
- Gatekeeping accusations – Critics argue that a handful of top VC firms, including Sequoia, concentrate too much power over who gets funded in Silicon Valley.
- Aggressive competition – Some rivals claim Sequoia overextends by taking up too much space in rounds or crowding out other firms.
While not unique to Sequoia, its market dominance draws more scrutiny than smaller or newer VC firms.
Fund Model Concerns
The 2022 shift to The Sequoia Capital Fund sparked debate across the industry.
Concerns included:
- Reduced transparency for LPs
- Liquidity limitations, making it harder to access returns
- Blurred lines between VC, hedge fund, and asset management strategies
Some LPs and industry veterans questioned whether this move was too ambitious — or even self-serving.
Global Challenges
Sequoia’s international operations, particularly in China, have faced:
- Geopolitical pressure from U.S. regulators
- Censorship and compliance risks in China
- Cultural and regulatory complexity across emerging markets
These tensions played a large role in Sequoia’s 2023 decision to split into independent regional entities.
VIII. Legacy & Influence
A Foundational Force in Venture Capital
Since its founding in 1972, Sequoia Capital has been more than just a top-performing VC firm — it has been a shaping force in how Silicon Valley functions. From how startups pitch investors to how VCs structure deals, Sequoia helped set the standards that many others still follow today.
“If you want to understand how venture capital evolved, you study Sequoia.” – Tech historian
It helped professionalize the venture industry at a time when it was informal and experimental, and it pushed for greater rigor, strategic discipline, and long-term thinking.
Shaping Startup Culture
Sequoia is often credited with creating the modern startup playbook, including:
- The obsession with “product-market fit”
- Prioritizing founder vision and execution speed
- Emphasizing company culture early
- Encouraging frugality and focus over hype
Many of today’s founders — even those who don’t raise from Sequoia — build their companies influenced by its frameworks, advice, or alumni.
Sequoia’s “company-building” approach is not just about funding, but guiding founders in hiring, product strategy, market entry, and leadership development.
An Alumni Network That Powers the Industry
Over the decades, many Sequoia-backed founders have gone on to become investors themselves, advisors, or serial entrepreneurs. Some notable examples include:
- Reid Hoffman (LinkedIn)
- Brian Chesky (Airbnb)
- Jan Koum (WhatsApp)
- Patrick & John Collison (Stripe)
This deep alumni network has reinforced Sequoia’s influence as a flywheel of innovation. Once you’re inside the Sequoia orbit, you’re part of a global talent engine.
A Track Record of Generational Companies
Sequoia’s greatest legacy lies in the companies it helped build — those that became not just valuable, but generationally defining:
- Apple: Changed computing
- Google: Changed access to information
- YouTube: Changed media
- WhatsApp: Changed communication
- Airbnb: Changed travel
- Stripe: Changing global payments infrastructure
- Nubank: Transforming banking in Latin America
These aren’t just “unicorns.” They are platforms upon which future businesses are built.
IX. The Future of Sequoia
Betting on What’s Next
As it looks toward the next 50 years, Sequoia continues to evolve — not by chasing hype, but by identifying paradigm-shifting trends early and investing with conviction.
Current Focus Areas:
- Artificial Intelligence (AI) – Backing foundational models, AI infrastructure, and vertical AI startups.
- Climate Tech – Investing in carbon removal, sustainable materials, and clean energy.
- Web3 – Despite volatility, Sequoia maintains conviction in decentralized finance and blockchain infrastructure.
- Biotech & Longevity – Exploring breakthroughs in healthspan extension, gene editing, and personalized medicine.
- Frontier Tech – Quantum computing, space tech, and next-gen robotics.
Their thesis: Back the rebels today who build the institutions of tomorrow.
Fund Strategy & Structural Innovations
The 2022 introduction of The Sequoia Capital Fund was just the beginning. The firm continues to:
- Experiment with rolling funds for continuous deployment
- Consolidate private and public equity strategies
- Offer longer-term alignment for LPs and founders alike
- Integrate deeper data science and AI tools for sourcing and diligence
Rather than acting like a traditional VC firm, Sequoia is now positioning itself as a next-generation asset platform — a blend of venture, growth equity, and public market strategy.
Leadership & Succession Planning
Sequoia has also been actively transitioning leadership, ensuring it won’t rely on a single figure or generation.
Notable changes:
- Roelof Botha (early investor in YouTube, Square) is now the Senior Steward, overseeing global strategy
- Newer partners like Jess Lee, Alfred Lin, and Shaun Maguire are rising voices within the firm
- The firm has institutionalized mentorship and internal promotion, allowing continuity without dependence on founder-figureheads
This long-term thinking reflects Sequoia’s belief in building a firm that lasts centuries, not just decades.
X. Conclusion
Summary of Sequoia’s Importance
Sequoia Capital stands as a pillar of modern venture capital. From its roots in 1972 backing companies like Apple and Atari, to its role in shaping global tech ecosystems, Sequoia has become the gold standard for VC firms. Its ability to consistently identify high-impact founders and support them across decades sets it apart.
It is more than an investor — it’s an institution builder, a cultural influencer, and a strategic partner to some of the world’s most iconic companies.
What to Watch For Next
As Sequoia moves into the next chapter of its evolution, here are key developments to follow:
- Performance of The Sequoia Capital Fund — Will this new structure outperform traditional models?
- Impact of Global Spin-Offs — Can Peak XV (India/SEA) and HongShan (China) thrive independently?
- Investments in Emerging Sectors — Especially AI, climate tech, and biotech
- Leadership transition — Will the next generation of Sequoia partners maintain its legendary standards?
Sequoia’s moves often signal where the future of venture capital and technology is headed.
Final Thoughts
In a world full of venture capital firms, Sequoia Capital remains different — by design, by discipline, and by ambition. It doesn’t chase noise. It doesn’t follow trends. It sets them.
Whether you’re a founder building the next unicorn or an investor studying market leaders, understanding Sequoia is understanding how tech empires are born — and how they endure.
The story of Sequoia Capital is far from over. In many ways, it’s just getting started.