A letter to the founders of Sequoia China member companies

Dear founders of Sequoia China member companies:

Seeing the letter feels like meeting! Today, Sequoia Global announced an important decision to realize the complete independence of the three major regions (US, Europe, China, India/Southeast Asia) before March 31, 2024. Because you are an important member of Sequoia China's investment ecosystem, we write to you specifically to explain the ins and outs of this decision.

Since its inception, Sequoia's mission has been to partner with extraordinary founders and help entrepreneurs build great companies that last forever. In the past 50 years, this mission has driven us to never be satisfied with past achievements, always focus on long-term interests, and continue to innovate ourselves. This awareness of continuous optimization and change allows us to serve entrepreneurs well for decades, support the continuous growth of member companies, and bring excess returns to our LPs.

Eighteen years ago, we saw entrepreneurs emerging from all over the world to create a new generation of industry leaders. In order to create and win more opportunities in emerging markets, Sequoia China came into being, and Sequoia India/Southeast Asia was also established subsequently. Sequoia adopted a unique and unconventional mode of operation at the time, and established teams in different regions that were rooted in the local market and deeply familiar with the local market and ecology, and each region had independent ownership and investment decision-making power. In the early stage of development, Sequoia shared best practice experience with regional teams and helped lay a solid foundation; at the same time, it selectively managed some back-office functions globally to ensure consistency in the operation of these functions in each region .

Establishing a local investment team, focusing on serving local entrepreneurs, and giving priority to meeting local needs are the core elements of Sequoia's success in different regions of the world. Today, Sequoia's business entities and teams in various regions have become leaders in the local market. In the process of development, Sequoia China’s investment direction has become more extensive and diversified. In addition to the technology industry, it also includes areas that are less involved in the other two regions, such as medical care and traditional consumption. In addition, Sequoia China has also established a new infrastructure Funds to invest in the infrastructure of China's new economic industries, and in recent years began to develop mergers and acquisitions investment - these are Sequoia China's unique businesses. Sequoia India/Southeast Asia and Sequoia US and Europe have also developed a series of unique operating methods and business structures that are more specific to the local markets they serve.

At the same time, how to manage and operate a decentralized global investment business has become increasingly complex and full of challenges. For example, the more in-depth localization development in the above-mentioned regions makes the global centralized operation mode of some back-office functions gradually become a burden rather than an advantage. In addition, as the companies invested by Sequoia in different regions become internationalized and compete for industry leadership on a global scale, there will inevitably be some competition among them. Member companies pose some problems.

In the face of these complexities, we need to further embrace the local-first strategy in order to achieve our mission in all regions and maintain a continuous lead. Therefore, Sequoia Global has decided that before March 31, 2024, each region will be completely independent and use different brands to conduct business: Sequoia China will continue to use the Chinese brand name "Sequoia" and adopt the new English brand name "HongShan". ", Sequoia America and Europe will continue to use the brand name "Sequoia Capital", while Sequoia India/Southeast Asia will use the new brand name "Peak XV Partners". We believe that the flexibility brought by different brands can enable each region to create more value for the founders and LPs it serves.

The years do not live, the seasons flow like a stream, and there is a constant way in the midst of changes. All members of Sequoia China will continue to be committed to being "the entrepreneurs behind the entrepreneurs" and provide all-round support and assistance to the founders. We will continue to work with you to use dreams as horses and forge ahead, injecting more vitality and motivation into China's entrepreneurship and innovation!

Sequoia China Team

June 6, 2023