Sequoia Shakeup: VC Powerhouse Loses Michael Moritz and 4 Partners

Michael Moritz, the longtime chairman and partner at Sequoia Capital, is leaving the storied venture capital firm after 38 years of startup investing, Sequoia said yesterday (July 19). At least four other star partners have also recently left the firm, the Information reported today. They are Mike Vernal, Michelle Fradin, Kais Khimji and Daniel Chen. The shakeup came at the heel of Sequoia’s decision last month to spin off its China and India divisions as independent firms, citing economic challenges and growing geopolitical tensions.

From now on, Moritz, 68, will take on an advisory role at Sequoia Heritage, a $15 billion wealth management fund separate from Sequoia Capital, the firm’s managing partner Roelof Botha said in a letter to investors yesterday. The fund, co-founded by Mortiz in 2010, manages the wealth of many Sequoia partners and startup founders through investments in funds and individual companies. Its investment decisions are independent of Sequoia Capital, according to the Financial Times.

Journalist-turned-billionaire investor

Moritz, born in Wales, was a journalist for many years before entering startup investing. In the early 1980s, he was a reporter for Time Magazine and authored a book about the development of Apple’s Mac computer. Moritz joined Sequoia in the mid-1980s as a partner. He was pivotal in helping establish Sequoia as a global venture capital powerhouse, having led the firm’s early investments in Google, YouTube, PayPal and Yahoo!

In more recent years, Moritz led Sequoia’s investments in Stripe, Klarna, Instacart and Getir. He is a board member of Stripe, Instacart, and several other Sequoia portfolio companies. Botha said Moritz will continue to represent Sequoia’s interests in a handful of companies where the firm has long-standing relationships with founders and CEOs. “Over time, we will partner with portfolio companies to smoothly transition Sequoia board seats currently occupied by Michael,” said yesterday’s letter.

Moritz also spearheaded Sequoia’s expansion into China in the early 2000s and recruited star partner Neil Shen, who later became head of Sequoia China. Shen is now leading the spun-off China unit under the name Hong Shan (the Chinese translation for the sequoia tree).

Moritz was Sequoia’s chairman from the mid-1990s until 2012, when he relinquished control of the firm, citing “a rare medical condition which can be managed but is incurable.” He continued to be the firm’s partner until this week’s resignation. Forbes estimates Moritz’s net worth at $5.2 billion, mostly tied to his early stakes in internet companies.