Venture capital firm Sequoia Capital has announced that it will split into three entities across the globe, and the India and Southeast Asia firm, which manages over $9.2 billion across 13 funds, will now be known as Peak XV Partners.
Sequoia, known for its early backing of Google, Instagram and some of China's biggest internet companies, operated as three already largely independent ventures - one focused on China, another on the US and Europe, and a third on India and Southeast Asia.
The three will split up into independent partnerships and separate firms, operating under different brands, by the end of March next year, the company said.
"Sequoia India and Southeast Asia, the largest venture capital firm in the region which manages over $ 9.2 billion across 13 funds, will now be known as Peak XV Partners," a company statement said.
Peak XV (pronounced Peak Fifteen) was the original name given to Mount Everest and symbolises the relentless pursuit of goals by founders.
The firm will continue to back ambitious founders in India, Southeast Asia and beyond from its current funds, which include $ 2.5 billion (Rs 20,000 crore) of uninvested capital.
Shailendra Singh, Managing Director of Peak XV Partners, said, "It's a new beginning for us as Peak XV Partners, but unlike most beginnings, this is an opportunity for us to build on top of the foundation laid over the last 17 years. Our firm will continue to be managed by the present leadership team and will continue to invest from the most recently raised set of funds focused on India and Southeast Asia."
Since its inception, Sequoia Capital (US/Europe), Sequoia China and Sequoia India/ SEA have been built as separate businesses with independent investment decision-making.
As per the statement, over the years the strategies for each business have diverged and the scale and market leadership across different geographies has started to result in brand confusion and portfolio conflict. This has led the leaders of each business to collectively decide to move to fully independent partnerships with distinct brands, in order to serve founders and Limited Partners in the best manner.
"We are seeing companies emerge from every region with global ambitions. The flexibility that comes with the new structure will open up an unbounded global opportunity and help create more value for our founders and LPs," Singh said.
Over the last 17 years, Sequoia India and SEA has raised 13 funds, and invested in over 400 start-ups, with 50-plus companies valued at $ 1 billion and above. The portfolio has seen 19 IPOs and multiple successful M&As resulting in $ 4.5 billion of realised exits so far. The investment team is led by 11 managing directors with an average tenure of over 12 years at the firm.
As per the statement, Peak XV Partners will continue to invest across stages (seed, venture, growth) and sectors like SaaS, AI, developer tools, cyber security, cloud infrastructure, climate tech, fintech, health tech and consumer, it said. The firm will further strengthen its programmes like Surge and Spark, which have been well-received by founders.
The firm remains committed as ever to help audacious founders build iconic companies that can be regional and global category leaders, the statement added.