Sequoia Capital Partner Michael Moritz Passes Away and Shifts Focus to Sequoia Heritage: Recent Reports
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Longtime Sequoia Capital Partner Michael Moritz Passes Away
Recent reports have revealed the passing of Michael Moritz, a partner at Sequoia Capital for many years. After a successful career spanning 37 years, Moritz has decided to shift his focus to Sequoia Heritage, a wealth management firm that he co-founded in 2010. With over $15 billion in assets under management, Sequoia Heritage will become Moritz’s primary focus, including a significant portion of his family’s foundation, Crankstart Resources.
To ensure a smooth transition, Moritz will continue serving on the boards of several companies backed by Sequoia, such as Stripe Inc., although he will no longer be involved in day-to-day operations.
Missteps in Cryptocurrency Investments Lead to Departures
Sequoia Capital’s foray into the cryptocurrency market has faced significant setbacks, causing some investors to leave. The collapse of FTX, a cryptocurrency exchange, resulted in a staggering $214 million loss from the Global Growth Fund. While this loss represents a small fraction of the company’s overall assets, it has affected Sequoia’s reputation. Key individuals involved in cryptocurrency investments, including Michelle Fradin and Danielle Chen, are departing the company. Qais Khimji and Mike Vernal, both highly influential partners, will also be leaving.
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Geopolitical Pressures Prompt Strategic Separation
In response to rising tensions between Silicon Valley and China, Sequoia Capital announced in June that it would separate its operations in China and India from those in the United States. This divergence strategy led to the creation of Sequoia Heritage, with Michael Moritz serving as a limited founding partner and board member.
Lawsuit Filed Over FTX Promotion
The cryptocurrency investing troubles escalated when Sequoia Capital, Thoma Bravo, and Paradigm became the subjects of a class-action lawsuit filed by investors. The lawsuit alleges that these entities promoted FTX and contributed to its legitimacy through marketing campaigns, even though the cryptocurrency exchange eventually went bankrupt. Investors claim that the defendants’ endorsement gave a false sense of security, resulting in significant financial losses.
