Sequoia Capital: The VC Firm Behind the World's Most Successful Startups (2024)

Sequoia Capital is an American venture capital firm headquartered in Menlo Park, California. It was founded in 1972 by Don Valentine, Arthur Rock, and Jim Barksdale.

The firm's name is a reference to the giant sequoia trees, which are known for their longevity and resilience.

• Current Total Aggregated Market Value: 3.3 Trillion $
• Invested in over 1200 companies by the year 2022
• Controlling almost all the startup ecosystems in India
• First Company in which Sequoia Capital invested: ATARI
• Atari acquired by Warner Communications, giving a 400% return to Sequoia
• Invests in DOT-COM Companies
• Invests for a long term horizon of at least 10 Years.

First Investment in 1977: The first company that Sequoia Capital invested $600,000 in was Atari. Atari was a video game company founded in 1972 by Nolan Bushnell and Ted Dabney. Sequoia Capital invested in Atari in 1977, and the company went on to become one of the most successful video game companies of all time.

Sequoia is one of the most successful venture capital firms in the world. The investment portfolio includes some of the most iconic technology companies in the world, Apple, EA, Cisco Systems, Google, Instagram, LinkedIn, Oracle, PayPal, WhatsApp and YouTube.

Sequoia is known for its long-term investment horizon and its focus on early-stage companies. The firm typically invests in companies that are in the seed, Series A, or Series B funding rounds. Sequoia has a reputation for being a hands-on investor, and its partners are often involved in the day-to-day operations of its portfolio companies.

Sequoia has been investing heavily in India and China.

CHINA: In recent years, Sequoia has been investing more heavily in China. The firm has opened an office in Beijing and has invested in a number of Chinese technology companies, such as Alibaba, Tencent, Meituan, Ant Group, and ByteDance.

INDIA: Sequoia is also backing a number of successful Indian startups, and has backed companies such as Flipkart and Paytm, Zomato & OYO, OLA, Meesho, and Porter.

Sequoia is a highly respected venture capital firm, and its investments have had a major impact on the technology industry. The firm's portfolio companies have created billions of dollars in value, and they have helped to shape the way we live and work.

Here are some of the most notable investments made by Sequoia Capital:

• Apple: Sequoia invested $150,000 in Apple in 1977, when the company was still called Apple Computer. Sequoia's investment helped to fund the development of the Apple II, which was one of the first personal computers to achieve mass market success.
• Cisco: Sequoia invested $2.5 million to bought 30% stocks of Cisco in 1987, when the company was still a startup. Sequoia's investment helped to fund the development of Cisco's networking products, which became the industry standard.
• Google: Sequoia invested in Google in 1998, when the company was still called BackRub. Sequoia's investment helped to fund the development of Google's search engine, which quickly became the most popular search engine in the world.
• WhatsApp: Sequoia invested in WhatsApp in 2011, when the company had only a few million users. Sequoia's investment helped to fund the growth of WhatsApp, which became the most popular messaging app in the world.
• Instagram: Sequoia invested in Instagram in 2010, and it helped the company grow into a popular social media platform.
• LinkedIn Sequoia invested in LinkedIn in 2003, and it helped the company become one of the leading professional networking platforms in the world.
• Oracle: The firm has backed a number of successful Indian startups, Sequoia invested in Oracle in 1986, and it helped the company become one of the leading database companies in the world.
• PayPal: Sequoia invested in PayPal in 1999, and it helped the company become one of the leading online payment processors in the world.
• YouTube: Sequoia invested in PayPal in 2005.
• Other Companies- Airbnb, Docker, Dropbox, Reddit, Zoom.

Controversies related to Sequoia Capital

The firm has been accused of being too close to its portfolio companies, of enabling unethical behavior, and of putting its own interests ahead of those of its investors. Sequoia Capital has denied these allegations, but they have damaged the firm's reputation.

• The BharatPe controversy: In 2022, Sequoia Capital was accused of enabling and turning a blind eye to alleged financial irregularities at the fintech startup BharatPe. The controversy led to the resignation of BharatPe's CEO, Ashneer Grover, and Sequoia Capital's managing director, Shailendra Singh.
• The WeWork controversy: In 2019, Sequoia Capital was one of the investors in the troubled office-sharing startup WeWork. The company was facing allegations of financial mismanagement and corporate governance issues. Sequoia Capital was criticized for its role in WeWork's IPO, which was ultimately canceled.
• The Bytedance controversy: In 2021, Sequoia Capital was one of the investors in the Chinese technology giant Bytedance. The company was facing allegations of censorship and data privacy violations. Sequoia Capital was criticized for its investment in Bytedance, which is seen as a potential threat to Western democracy.

It is important to note that Sequoia Capital is not the only venture capital firm that has been involved in controversies. The venture capital industry is rife with conflicts of interest and ethical concerns. However, Sequoia Capital's size and prominence make it a particularly visible target for criticism.