Silicon Valley investor shuts London office as US dominates AI

Sequoia Capital, one of Silicon Valley's most successful venture-capital firms, is closing its London office and cutting jobs as it consolidates around its Bay Area headquarters, according to The Telegraph. The firm, which opened a UK office in 2020 and hired a string of partners during the post-pandemic tech boom, said in a statement: "We are closing our London office, which means several people will be leaving Sequoia. We simply don't see the need for a local presence." The firm described the decision as a pullback following an "expansionary phase" in which it opened offices around the world. It had previously withdrew from its Chinese and Indian ventures, spinning them into separate businesses focused on Asia.

Sequoia said it will continue to invest in British and European founders with "world-class support from our home base in the Bay Area." Some of its current London partners will move to the US with the firm, while Luciana Lixandru, one of its senior London partners, will remain in Europe as a partner. Some of the firm's most successful UK investments, including its stake in ElevenLabs, were led by partners based in the US.

The retreat comes as US dealmaking reaches record levels, with venture investors competing to back AI labs. Total US venture funding has exceeded $500bn so far in 2026. UK start-ups have also raised bumper rounds, with more than $23.4bn raised in 2026 according to DealRoom data, but the UK ecosystem remains far smaller than the US.

Sequoia's London exit follows similar moves by Andreessen Horowitz, which withdrew in 2025 after relocating its focus to the US following Donald Trump's return to power, and Coatue, which quit London in 2024. The closure is seen as a setback for Britain's AI ambitions and its attempts to attract major global investors. Sequoia, founded in 1972 by early Apple investor Don Valentine, underwent a leadership change last year when managing partner Roelof Botha was pushed out by other senior partners.