Sequoia Pressures Former Leader Moritz to Leave Klarna Board Seat

Sequoia Capital is pushing for one of its most venerated former partners, Michael Moritz, to step down from his personal board position at the “buy now, pay later” company Klarna.

Sequoia partner Matthew Miller in recent days asked shareholders at Klarna to remove Moritz from the board of directors, a person with direct knowledge of the matter said. Roelof Botha, Sequoia’s chief, also told Klarna shareholders Miller had Sequoia’s full support in asking for the removal of Moritz. Klarna, founded 19 years ago, has seen its valuation tumble nearly 90% from its peak to around $7 billion, though the company is inching closer to a long-awaited initial public offering.

Moritz, who retired from Sequoia last year and wrote the firm’s first Klarna check in 2010, left his Sequoia-appointed Klarna board seat in January but continued serving as Klarna board chair in an independent capacity. The transition allowed “Klarna to continue enjoying his stewardship,” the company wrote in a press release.