Sequoia Exits Add to Pressure on Junior Dealmakers

Five partners have exited Sequoia Capital, I reported yesterday, one of the biggest personnel shake-ups at the legendary venture capital firm in recent history. It’s a sign of what’s coming for the broader industry. 

The departures included three junior dealmakers, or partners with less experience. Two of them, Kais Khimji and Daniel Chen, have already started artificial intelligence companies with Sequoia funding. In addition, two senior investors, including the firm’s former leader, Michael Moritz, also left. Moritz, 68, had scaled back his responsibilities a decade ago, so his exit wasn’t a big surprise. 

It’s the turnover of junior dealmakers that stands out. Yes, turnover is completely normal in the venture business, particularly for younger investors, who get cut when leadership doesn’t see a path for them to make general partner. Senior investors can get the ax, too. That typically happens after a while if their investments haven’t generated sufficient returns.