Sequoia Raises $10 Billion, Closes London and Reverses 20 Years of Expansion
Sequoia raises about $10 billion, closes London, ends Arc and Scouts, merges investing teams and flattens its partnership in a major Silicon Valley reset.
Summary
On November 4, 2026, Sequoia Capital said it had raised roughly $10 billion and was reversing a roughly 20-year expansion under Doug Leone, Jim Goetz and Roelof Botha. It will close its London office, opened in 2020, causing several departures; end Scouts and Arc; simplify the Sequoia Capital Fund; streamline operating and investing teams; merge Early and Growth; flatten the partnership; and abolish Monday partner meetings for continuous founder support. Sequoia says concentrating capital and talent on fewer investments will improve support from idea through IPO, with European companies served from the Bay Area. Seven general partners now own and operate the firm: co-stewards Alfred Lin and Pat Grady, plus Andrew Reed, Shaun Maguire, Konstantine Buhler, Sonya Huang and David Cahn, who joined in 2023.
Scouts, launched around 2009, let founders and operators invest small checks for Sequoia; Jason Calacanis surfaced Uber, Sam Altman brought Stripe, and early scouts included Airbnb CEO Brian Chesky and Dropbox founders Arash Ferdowsi and Drew Houston. Arc, launched in March 2022 as a Y Combinator rival, ran several seven-week pre-seed and seed cohorts annually, investing $500,000 to $1 million per company. London partner Luciana Lixandru, hired from Accel in 2020, rejected a San Francisco move; she remains a partner, keeps board seats and will personally back European founders. The closure follows Andreessen Horowitz’s London exit last year and Coatue’s in 2024.
Former Workday CEO Carl Eschenbach returned full time in March; Doug Leone is reengaged, while Sequoia highlighted Liam, Sonali and Dev and empowered Hem, Natalie, Rishi, Stacey and Theresa. Jess Lee, Sequoia’s first female partner and Arc overseer, became chief product officer; Stephanie Zhan, at Sequoia since 2015, left and announced a new firm last month. Botha was voted out as senior steward last fall, cut ties this summer and joined SpaceX’s board. The retrenchment follows Sequoia’s 2023 separation from China and India and Southeast Asia arms, now HongShan and Peak XV. Results remain unproven.
Positives
- Roughly $10 billion in new funds gives Sequoia substantial capital for its narrower, high-conviction investment strategy.
- Seven general partners now own and operate Sequoia under a flatter structure intended to reduce hierarchy.
- Merging Early and Growth could give founders more seamless support from company formation through IPO and beyond.
- Ending Monday partner meetings is designed to make Sequoia continuously responsive to founders rather than tied to a weekly cycle.
- European founders remain eligible for Sequoia backing, although support will come from the Bay Area.
Risks & concerns
- Closing the London office opened in 2020 will eliminate Sequoia’s local European presence and cause several departures.
- Ending Scouts removes the network that surfaced Uber through Jason Calacanis and Stripe through Sam Altman.
- Shutting Arc eliminates seven-week cohorts that gave pre-seed and seed companies $500,000 to $1 million upfront.
- Luciana Lixandru declined relocation to San Francisco, while Stephanie Zhan left and several London employees will depart.
- Andreessen Horowitz and Coatue also closed London offices, reinforcing the venture industry’s retreat from local European operations.
- Sequoia acknowledges it is dismantling programs that were working, leaving the benefits of its restructuring unproven.