Sequoia Capital has announced a significant strategic shift, effectively reversing much of its expansion from the past two decades. In a memo titled “The Sequoia of Tomorrow,” the firm revealed it has raised about $10 billion in new funds but is also closing its London office, shutting down both its Arc accelerator and Scouts program, and merging its early-stage and growth teams into a single unit. The move reflects a renewed focus on a smaller, Bay Area–centered operation, emphasizing a streamlined approach and reducing hierarchical complexity that developed during a period of broad geographic and program expansion.

The Scouts program, founded around 2009 and widely imitated across the venture world, was designed to empower founders and operators to invest on Sequoia’s behalf, giving the firm early insight into promising startups like Uber and Stripe. Similarly, the Arc accelerator, Sequoia’s pre-seed and seed batch program launched in 2022, provided substantial upfront capital and guidance to nascent companies. Both initiatives are being discontinued as Sequoia shifts to concentrate resources on fewer founders, betting on deeper engagement over broader reach.

The decision to shutter the London office, opened in 2020, underscores Sequoia’s renewed commitment to the Bay Area as its principal hub. While affirming that Europe will continue to produce standout founders, Sequoia indicated it will support those entrepreneurs remotely, a stance that follows a recent trend among major funds reducing their European footprints. This has sparked concern among European partners and founders who face increased pressure to relocate or establish a presence in Silicon Valley to maintain close ties with top-tier investors.

Sequoia is also restructuring internally, consolidating its investing teams and doing away with the long-standing Monday partner meetings to better align with the 24/7 rhythms of founders. The firm has made personnel changes that highlight a flattening of its partnership, returning to a more lean and integrated team structure led by seven general partners, including co-stewards Alfred Lin and Pat Grady. Despite these upheavals, Sequoia emphasizes its enduring mission to back exceptional founders through quality-focused venture investing rather than scale, expressing optimism about future opportunities in emerging fields like AI and space.