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Business · Fund
Sequoia Capital China to reduce investment staff by 20%
2019/05/07 07:35:18
sequoia capital; job cuts; china tech

May 07, 2019 (China Knowledge) - Leading Chinese venture capital firm Sequoia Capital China is set to cut up to 20% of its investment staff as a slowdown in the country’s technology sector starts to weigh in on investor appetite.

The layoffs come after a government campaign against debt financing has reduced the amount of capital available to start-ups, leaving them to compete for shrinking pools of fresh capital.

At the same time, returns from firms going public have fallen amid increased market volatility resulting in down rounds for the company where the company’s public valuation falls below that of a pervious private funding round.

During the first quarter this year, Chinese venture capital and private equity firms had only managed to raise USD 1.5 billion across all sectors, falling sharply from the USD 9.4 billion raised over the same period last year.

The job cuts by Sequoia Capital China, one of the country’s top tech investors comes after several companies in China tech industry have also announced similar job reductions. These companies include ride-hailing company Didi Chuxing, e-commerce player and even tech heavyweights Tencent Holdings.

Sequoia Capital China had previously made investments into companies such as Didi, Meituan-Dianping as well as Bytedance. Last year it raised its first seed fund of USD 150 million and its fifth growth fund of USD 1.8 billion.

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