According to Fortune, Roelof Botha announced Tuesday he’s stepping down as Sequoia’s steward after holding the role since 2017. He’s passing leadership to partners Alfred Lin and Pat Grady, who will serve as co-stewards returning to a structure last used when Michael Moritz and Doug Leone led the firm. Botha praised their “fearlessness and resilience” in a letter posted on X, saying they don’t shy away from difficult conversations. The transition comes as Sequoia deals with internal controversy over partner Shaun Maguire’s posts that COO Sumaiya Balbale reportedly found Islamophobic, leading to her resignation. Botha will move into an advisory role while remaining on portfolio company boards at the firm that manages $56 billion in assets.
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Back to the duo model
Sequoia’s decision to return to co-stewards is pretty telling. The firm clearly believes the partnership model worked well under Moritz and Leone, and they’re betting that Lin and Grady can recreate that magic. Lin brings that analytical Zappos background and early bets on Airbnb and DoorDash, while Grady has the enterprise software chops from Snowflake and Zoom. It’s a complementary pairing that covers both consumer and B2B pretty comprehensively.
But here’s the thing – running a venture firm as co-stewards requires incredible chemistry. You’re basically sharing the most important job in the partnership. The fact that they’re returning to this model suggests they’ve seen it work before and believe these two have the right dynamic. It’s not exactly common in VC land where egos can sometimes get in the way.
Walking the neutrality tightrope
Now for the immediate challenge: that political firestorm. Sequoia has long maintained a policy of “institutional neutrality” while allowing individual partners to express their views. But that policy is being seriously tested right now. When a partner’s comments lead to a COO’s resignation, you’ve got a real problem on your hands.
Botha’s comments at TechCrunch Disrupt last week were revealing. He basically said Maguire’s stance appeals to “a particular set of founders” but comes with “tradeoffs.” That’s venture capital diplomacy speak for “this is causing us headaches with other founders and LPs.” The new stewards will need to navigate this carefully at a time when every VC firm is being forced to take positions on political and cultural issues whether they want to or not.
The bigger transformation
Look, this leadership change isn’t happening in isolation. Sequoia has been through some massive structural shifts recently. The 2021 move to an evergreen fund was huge – basically ending the traditional 10-year fund cycle. Then splitting off China operations in 2023? That’s major geopolitical positioning.
And they’re still deploying serious capital – just last week they announced a $200 million seed fund and a $750 million venture fund. So while the leadership transition grabs headlines, the firm’s fundamental strategy seems solid. They’re adapting to the new world of venture while maintaining their position as one of the industry’s powerhouses.
The real question is whether Lin and Grady can maintain Sequoia’s legendary returns while managing the increasingly complex politics of modern venture capital. They’ve got the track records and the partnership’s confidence. Now they just have to steer one of Silicon Valley’s most iconic firms through its next chapter.
