The venture capital giant Sequoia Capital is splitting its China business into a separate entity amid rising tensions between Washington and Beijing, reports the Financial Times. The renowned Silicon Valley group, which made bets on fast-growing tech companies such as TikTok parent ByteDance and Alibaba, said on Tuesday it would run its Chinese business as a “completely independent” entity from its US operation.
The Chinese arm will give up the Sequoia name and instead be called HongShan, a romanisation of its Chinese name, which means redwood. The VC group will also separate its Indian and south-east Asian business into a third entity, it said, adding that the changes would take place by March next year.
Roelof Botha, managing partner of Sequoia Capital, said in an interview that a decision to break up was taken in the past few months. “It really was a very complicated decision. Over the years, we have reassessed the cost-benefit trade-off of this arrangement and whether it was the right structure for the firm. We realised it was time for this.”
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