Sequoia raises $10B, shuts London office in Silicon Valley reset

Sequoia Capital has raised approximately $10 billion in a new round of funding while scaling back its international footprint. On Wednesday, the venture firm said it will close its London office and discontinue two founder programs, shifting its focus toward the San Francisco Bay Area. The firm is also laying off its Arc Accelerator and the Scouts network, and merging its early- and late-stage investment teams into a single organization without layers of middle management. Sequoia maintains it can operate effectively without a local European presence, stating: "We simply don't see the need for a local presence. We believe that Europe will continue to produce outlier founders and companies."

The London closure carries direct consequences for staff. The office began operations in 2020, and according to the Financial Times, three of the four partners opted not to relocate. Luciana Lixandru, the firm's first partner in Europe, said, "I will be staying in Europe where my family is, and I want to build my career there." Better Tomorrow Ventures co-founder Sheel Mohnot said most of the changes appear reasonable and logical.

The move matters for European founders because Sequoia has been a significant backer of the region's companies. According to the firm, it led a $900 million Series C round for Trade Republic in 2021, and in May 2026 it co-led a $40 million Series B round for Paris-based Dust. Both figures reflect total round sizes rather than Sequoia's individual commitments. The firm has said it will continue investing in European startups from California.

Sequoia's retreat coincides with a concentration of capital in a small number of large deals. According to Crunchbase, global venture funding reached $159 billion in Q3 2026, with AI startups accounting for $102 billion, or 64% of the total. A record 27 companies each raised at least $1 billion, together absorbing about a third of all funding. American startups drew $91 billion, or 57% of global funding, with the Bay Area alone securing 24%.

Europe's structural funding gap remains wide. According to Dealroom, Europe's share of global venture investment fell from 13.8% in 2016 to 9.3% in 2026, though European startups still raised $67.2 billion through September, including $18.6 billion in London. The European Central Bank estimates the combined size of US venture funds at roughly €930 billion, compared with €150 billion in the EU. McKinsey found European vertical-AI startups attracted 67% as much funding as US peers in the first half of 2026, up from 9% in 2018. Whether Sequoia continues leading major European rounds, or cedes that role to local investors, remains an open question.