by Kate O’Keefe, Berber Jin and Aruna Viswanatha at The Wall Street Journal
Sequoia Capital became the most consistent moneymaking venture-capital firm in history, placing huge winning bets in the U.S. and in China. In the end, the Silicon Valley firm found it had to choose just one.
Scrutiny of Sequoia’s China ventures had been rising in Washington for months, with officials and members of Congress hammering the firm for bankrolling Chinese technology competitors and potentially boosting China’s military. Then, last summer, Sequoia’s China arm tapped American investors to raise a record $8.5 billion to pour into promising Chinese companies, and the pressure notched higher.
Venture-capital firm Sequoia Capital’s offices in Menlo Park, Calif. PHOTO: JOSH EDELSON/BLOOMBERG NEWS
Vieira explained that Sequoia China doesn’t invest in defense technology, but given the firm’s structure, Sequoia in the U.S. has no control over the China unit’s investments, the people familiar with the matter said.
It wasn’t enough. Sequoia this month bowed to the…