This article uncovers the true reasons behind Sequoia Capital CEO Roelof Botha's departure. Botha's exit was not a voluntary handover but rather a forced removal, orchestrated by partners leveraging Sequoia's unique internal governance mechanism, which allows partners to initiate a removal vote with greater weight given to more senior partners. Key reasons included Sequoia repeatedly missing early-stage investment opportunities in hot AI unicorns like OpenAI and Cursor, leading to widespread partner dissatisfaction. Additionally, Botha's mishandling of the Klarna board controversy and the COO's departure, coupled with the ill-timed launch of the Evergreen Fund program, fueled internal conflict and external criticism. Despite Botha generating over $50 billion in returns for LPs during his tenure and investing in successful projects like YouTube and Instagram, internal strife and external pressures ultimately led Sequoia to transition leadership. Alfred Lin and Pat Grady, two prominent partners, subsequently took over, and Sequoia immediately announced the establishment of a new early-stage fund to heavily invest in AI, signaling a major strategic and leadership shift.
