Sequoia Capital announced some major changes this week, including the closure of its London office, the merger of its early-stage and growth teams, and the end of its Scouts program.
Now, the Financial Times has published a report painting all of this as an attempt to undo the legacy of former leader Roelof Botha, who stepped down as the firm’s steward last year. An unnamed source told the FT that Botha “loved process and hierarchy,” while “the rest of the team didn’t.”
Apparently, not everyone is on-board with the changes, with another source firing back that this seems like an “erasure of Sequoia’s heritage, not Roelof’s legacy.”
The break between Botha and his old firm reportedly deepened after Botha joined the SpaceX board this summer. (Botha and SpaceX CEO Elon Musk previously worked together at PayPal.) A source told the FT that Sequoia’s partners were blindsided by the announcement, because Botha “didn’t ask compliance, he didn’t get sign off from the partnership” — even though his new role could complicate the firm’s ability to trade its $20 billion stake.
A Sequoia spokesperson said that the firm continues to “collaborate closely” with Botha.