World news and discussion on TalkFuse.
Sequoia scraps London office as UK employees face axe
Sequoia Capital is closing its London office and cutting several jobs, ending its local presence six years after expanding into Europe. The Silicon Valley investor says it will continue backing European startups, with investment decisions and support increasingly handled from California.
The move reverses an expansion that began in 2020 and grew to six London-based partners by 2023. It comes as UK startups raised $23.7bn in venture capital last year, up 33 per cent on 2024, with London receiving almost three-quarters; overseas investors supplied 74 per cent of UK funding in 2025. The closure is part of a wider restructuring focused on selective investments, despite Sequoia raising about $10bn in new funds.
In short
- Sequoia is closing its London office and cutting several jobs.
- The firm says it will still invest in European startups from California.
- The retreat comes amid a broader shift towards fewer, more selective investments.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Sequoia can reasonably argue that a smaller, more selective operation will let it deploy capital where it sees the strongest opportunities while keeping European founders eligible for investment and support. Centralising decisions in California may also reduce duplication and fit a firm whose strategy and networks are increasingly global.
The case against
Critics can reasonably see the closure as a loss of local expertise and sustained engagement, especially when overseas investors provide much of the funding for UK startups. Handling support from California may make it harder to build relationships and understand local needs, while job cuts impose immediate costs on staff and could weaken confidence in Sequoia’s long-term commitment to Europe.
Americas Business Companies Europe UK World