Sequoia Capital Closes London Office, Ends Arc and Scouts, Says It Raised About $10 Billion

Sequoia Capital is unwinding much of what it built over the past two decades. In a memo posted to X on Wednesday, Nov. 4, titled "The Sequoia of Tomorrow," the firm said it is closing its London office, ending its Arc accelerator and Scouts program, merging its early-stage and growth teams into one, flattening its partnership and dropping the Monday partner meeting. It also said it has raised approximately $10 billion in new funds.

The firm's own explanation is blunt. Sequoia described a roughly 20-year expansion across multiple businesses and geographies that required real management on the operating side. An unintended side effect, it said, was that hierarchy spread into the partnership itself.

"We've made several internal changes that have the effect of flattening the partnership," the memo said. The stated goal is that every founder gets "the full benefit of Team Sequoia" regardless of who the lead partner is.

What is being shut down

London opened in 2020, when Sequoia hired Luciana Lixandru away from Accel to lead its European push. By 2023 the London investment team had grown to six partners.

"We are closing our London office, which means several people will be leaving Sequoia," the firm said. "This is not about the team. They are excellent. We simply don't see the need for a local presence." Sequoia said Europe will keep producing outlier founders and that it can support them from the Bay Area.

Scouts dates to around 2009. It gave small checks to founders and operators to invest on Sequoia's behalf. Jason Calacanis steered Sequoia to Uber through the program, and Sam Altman brought in Stripe. Early scouts also included Airbnb's Brian Chesky and Dropbox's Arash Ferdowsi and Drew Houston.

Arc launched in March 2022 as a batch accelerator for pre-seed and seed founders. Sequoia says it now wants "more energy behind fewer people and initiatives" and a return to what it calls high-conviction, highly selective venture capital.

Who is leaving London and who is staying

The London partners have responded in different ways.

Lixandru said she declined an offer to move to San Francisco. "My conviction on Europe hasn't moved, and neither am I," she wrote on X. She said she remains a Sequoia partner, keeps her portfolio board seats, and will invest personally in European founders. She said she has more to share on her next steps soon.

Anas Biad said he is staying with Sequoia and moving from London to San Francisco, and will keep working with European founders.

Julien Bek wrote on X: "Sequoia is consolidating in the US. I'm staying in Europe. Time to build." He said he will keep supporting his portfolio companies and sitting on their boards, but did not say what his relationship with Sequoia will be. George Robson praised the firm's move to consolidate around the Bay Area, and his status has not been made clear.

Sequoia has not disclosed a headcount for the departures or a closing date for the office.

Leadership and structure

The overhaul comes about a year after a leadership handover. Alfred Lin and Pat Grady took over as co-stewards when Roelof Botha stepped down. Botha followed Jim Goetz, who followed Doug Leone.

Seven general partners now own and run the firm: Lin, Grady, Andrew Reed, David Cahn, Konstantine Buhler, Shaun Maguire and Sonya Huang. The memo was signed by first name.

The Early and Growth labels are gone, replaced by a single team. Sequoia says that should make support smoother as founders move between stages. The firm says it will also try to follow founders' schedules rather than make founders follow its internal process.

The European backdrop

The retreat lands at an awkward moment for London. UK startups raised $23.7 billion in venture capital last year, up 33% from 2024, according to Dealroom figures commissioned by the UK government. London accounted for almost three-quarters of that total. Foreign capital made up 74% of UK venture funding in 2025, so the sector leans heavily on investors based elsewhere.

Sequoia is not the first U.S. heavyweight to leave. Coatue closed its London office in 2024, and Andreessen Horowitz did the same last year.

Sequoia says it has not changed its position on European founders. The partners who are staying put in Europe are making their own case. Lixandru called Europe a "wonderful, imperfect ecosystem" and said that is where she wants to build.

There is also a cost to founders outside California. Sequoia's memo says Europe will keep producing top companies, but its support will now come from the Bay Area. As TechCrunch put it, European founders who already felt pressure to move there or open an office in the region will feel more of it now.

What comes next

Three things are still open. Sequoia has not said how many London employees will leave. Bek's and Robson's status is unclear. Lixandru has promised an update on her next steps. The $10 billion figure is Sequoia's own, and the firm has not broken it down by fund.

Sequoia says its mission of delivering the best possible returns to its limited partners is unchanged.