Sequoia Names Alfred Lin and Pat Grady as Co-Stewards

Leadership Transition at Sequoia Capital

Roelof Botha is relinquishing his position as senior steward of Sequoia Capital, concluding a tenure of just over three years. The renowned venture capital firm revealed on Tuesday that Alfred Lin and Pat Grady will jointly assume the role of co-stewards.

New Leadership Roles

Alfred Lin initially joined Sequoia Capital in 2010 and has been instrumental in pivotal investments within companies that have become industry leaders, including Airbnb, DoorDash, and Kalshi. Pat Grady, meanwhile, has served as a partner for close to 19 years, spearheading Sequoia’s growth-stage investing since 2015. His portfolio boasts successful ventures like ServiceNow, OpenAI, and Harvey, a leading legal AI platform.

Botha's Tenure and Challenges

Since 2017, Botha oversaw the allocation of $50 billion to the firm’s limited partners while leading Sequoia’s U.S. and European operations. He ascended to the firm’s highest leadership position in mid-2022, a period immediately marked by significant market volatility.

The downturn negatively impacted public markets, resulting in substantial valuation reductions for numerous companies within Sequoia’s investment portfolio. Furthermore, the firm incurred a $200 million loss due to the collapse of cryptocurrency exchange FTX, although this represented a relatively small proportion of Sequoia’s overall assets.

In 2023, Sequoia strategically restructured its operations, separating its India and China divisions into independent entities, responding to escalating geopolitical tensions and evolving regulatory landscapes.

Controversies and Internal Discussions

This year, Sequoia faced public scrutiny following controversial statements made by partner Shaun Maguire regarding New York City mayoral candidate Zohran Mamdani, which were perceived as Islamophobic. Despite a later retraction of some remarks, the incident sparked considerable online debate and backlash.

Subsequently, Sumaiya Balbale, Sequoia’s chief operating officer and a practicing Muslim, resigned in August. Her departure stemmed from the firm’s decision not to take disciplinary action against Maguire, a matter initially reported by the Financial Times and discussed during a TechCrunch Disrupt event featuring Botha.

Botha's Perspective on Internal Matters

When questioned about Balbale’s resignation, Botha stated that Sequoia maintains a policy of not commenting on personnel issues and expressed appreciation for her contributions. Regarding Maguire, he emphasized the importance of diverse viewpoints within the firm, stating, “We need spiky people inside of Sequoia.”

Botha further clarified that partners are granted the freedom of speech in their personal endeavors, noting that some engage in philanthropic activities or other private pursuits without the same level of public visibility as Maguire.

The Role of the Steward

During the same interview, Botha described his role as senior steward as one of guidance rather than absolute authority, emphasizing the collective power of the firm’s partners in shaping its direction. He jokingly remarked that his title was chosen over “Global Supreme Leader.”

Succession Planning

When asked about potential successors, Botha identified Alfred Lin, Pat Grady, Luciana Lixandru (leading European investments), and Andrew Reed (with successful investments in Figma and Klarna) as individuals with significant potential and a collaborative approach.

He underscored that all investors at Sequoia participate in investment decisions, prioritizing the strength of ideas over seniority. “We want the triumph of ideas, not the triumph of seniority,” he stated.

Looking Ahead

The leadership transition signifies the importance of the steward position, even as Sequoia continues to achieve investment successes. The firm is now focused on navigating a new phase following a period of challenges.

Reflecting this commitment to future success, Sequoia recently renovated its office space, prominently displaying a wall inscribed with the reminder: “We are only as good as our next investment.”

The firm has also announced the launch of a $750 million early-stage fund focused on Series A startups, alongside a $200 million seed fund.