Sequoia Capital

The World Benchmarking Alliance assessment found that Sequoia Capital has no publicly available policy committing to respect human rights as laid out in the UN Guiding Principles and ILO declaration. The firm disclosed no target to reach net-zero financed emissions by 2050, no key sectors identified for climate engagement, and no sustainability responsibility assigned to senior leadership. The assessment also found no evidence of linking executive remuneration to sustainability performance criteria, representing significant gaps in ESG governance for one of the world's most influential venture capital firms.

In June 2023, Sequoia Capital announced it would split its China operations into an independent entity called HongShan, completed by March 2024. The US House Select Committee on the CCP later revealed that Sequoia China had invested in companies supporting PLA military modernization and CCP surveillance, including EverSec (PLA cybersecurity) and 4Paradigm (PLA battlefield AI). Congress raised concerns that the split was designed to avoid regulatory scrutiny while allowing continued US capital flow to problematic investments, and that HongShan would likely scrap the national security screening mechanism Sequoia had established.

In 2022-2023, several Sequoia Capital India portfolio companies were embroiled in corporate governance scandals. BharatPe, where Sequoia held 19.6% shares as largest shareholder, faced allegations of financial irregularities. GoMechanic's founders were found to have committed fraud, leading Sequoia to write off its investment. Trell and Zillingo also faced governance issues. Sequoia publicly stated it would 'not tolerate any financial irregularity' and engaged Ernst & Young for audits. The pattern raised questions about Sequoia's portfolio oversight and due diligence practices in its India operations.

Sequoia Capital invested over $213 million in FTX entities. The firm publicly promoted FTX and Sam Bankman-Fried, publishing a glowing profile and having partners vouch for the exchange's safety. When FTX collapsed in November 2022, approximately $8 billion in customer funds were missing and Bankman-Fried was later convicted of seven criminal fraud counts. A class action lawsuit (Rabbitte v. Sequoia Capital Operations LLC) alleged the firm lent an 'air of legitimacy' to FTX and would have discovered the fraud had it conducted genuine due diligence. Two partners involved in the FTX investment later departed the firm.

In December 2020, Sequoia Capital published a formal commitment to diversity, equity, and inclusion, including NAACP donation matching and internal programs like Team Member Resource Groups focused on intersectionality. This followed the 2016 hiring of Jess Lee as the firm's first female investing partner in the US in its 44-year history. In 2020, the firm also hired Luciana Lixandru as its first partner based in Europe. However, World Benchmarking Alliance assessments noted limited public disclosure on gender equality targets, women in leadership proportions, and gender pay gaps.