Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Dow Jones Events / Flickr

Sequoia Capital on Tuesday told investors that partner Jim Goetz will be stepping back as one of the firm's "stewards" and co-head of U.S. venture capital, to be succeeded by Roelof Botha. It is the third major management transition in the history of Sequoia, a Silicon Valley stalwart that has backed such companies as Apple, Cisco, Google, PayPal and WhatsApp.

Why Goetz matters: The guy is a VC legend. For years Goetz flew under the radar despite big wins like Palo Alto Networks. But that all changed in 2014, when Facebook bought WhatsApp for $19 billion. Not only was it the largest-ever purchase of a VC-backed company, but Goetz somehow persuaded WhatsApp's founders to never accept venture capital from any other firm.

Goetz tells Axios: "It's clear that it's time to empower the next generation, which means that I need to get out of their way. I'm going to stay away for a few months, but will keep my board seats and serve as a consigliere to Roelof when needed. Then I plan to come back and keep making new investments, and I'd expect to do more new investments in the next three years than I did in the last three."

Why Botha matters: Not only has the South African native (and former PayPal CFO) led deals like YouTube and Instagram, but his current portfolio includes such "unicorns" as Eventbrite and MongoDB. Now the 43 year-old gets to leave his mark on Sequoia's future leaders.

Botha tells Axios: "My role is really to help develop our next generation of investors. So many people stay around too long and get too much credit compared to their teams. I want to make sure the team we have here continues on well past me, just as Jim has done."

Why Sequoia matters: It is estimated that Sequoia-backed companies comprise around 20% of the NASDAQ's overall value.

Why the transition matters: It can be very hard for small partnerships in the VC or private equity space to have successful management transitions, let alone several of them. Sometimes founders want to realize some sort of equity for their work, or keep their name on the door. Sequoia founder Don Valentine, however, intentionally chose a firm name in 1972 that reflected long-lived stability, and later handed over the reins to Doug Leone and Michael Moritz without asking for a dollar in return. Moritz stepped back a bit in 2012 due to health concerns, and Leone asked Goetz and Neil Shen to take on the "Sequoia Steward" role while Leone focused on running the day-to-day. Now Goetz is following tradition by passing it on.

Leone tells Axios: "In 1996, Don met with Michael Moritz and me in a conference room. He shared three messages. First, he said he'd like us to guide the partnership. He did not ask for anything in return. Second, he said you decide if you want me around. Finally, he slid a piece of paper across the table. It had a couple dozen categories of investor responsibilities, with checkmarks beside the things he was willing to do going forward.

Don had observed partners at other firms staying around too long, in some cases even falling asleep in meetings, and clinging on to too much of the economics. He believed that was very damaging, and wanted to ensure it never happened to Sequoia."

Other changes: Botha had been co-leading the U.S. venture team the Goetz, but now will be joined by Alfred Lin. Sequoia's U.S. growth equity business will be co-led by Pat Grady and Michael Abramson. Leone will take on more of a role overseeing the firm's global platform ― it has major operations in both China and India ― and at some point plans to scale back his involvement (although no time table has been set).

The letter: Below is what Goetz sent to Sequoia limited partners:

Disruption is at the heart of our business. It's what creates opportunities for Sequoia entrepreneurs, and it's what helps them produce extraordinary returns for our LPs. Ironically, it's also the force that many venture capital firms resist, often contributing to their own decline.

Sequoia is the exception.

Over the past 45 years, starting with Don Valentine, Sequoia has embraced change as much within our partnership as outside it. That willingness to renew and reinvent – often by empowering the less experienced among us – has been the foundation of our success. I am deeply indebted to Doug and Sir Michael for the trust they placed in me, first as a Sequoia-backed entrepreneur, later as co-lead of the venture business, and more recently as a Sequoia Steward. Implicit in that arc is an obligation to pay it forward to the next generation. That time has come.

During the coming week I plan to step aside from my leadership responsibilities. I do so with great confidence in this next generation of leaders. They represent a gifted cohort who bleed Sequoia, and their fresh ideas will spur the next wave of reinvention. More to come on these well-deserved changes from Doug.

To ensure a smooth transition and encourage change, I am going to decamp from the Menlo office for a few months. I will remain a GP in existing funds and continue to represent Sequoia on boards. When I return, I intend to sponsor new investments but I plan to reduce my workload, so that I can start saying "yes" to some of the other aspects of my life that have been on hold over the past twenty years.

Forever grateful.

JJG

Go deeper

5 hours ago - Politics & Policy

Scoop: Sources say Beto plans Texas comeback in governor’s race

Former U.S. Rep. Beto O'Rourke speaks during the Georgetown to Austin March for Democracy rally on July 31, 2021, in Austin, Texas. Photo: Brandon Bell/Getty Images

Former Rep. Beto O’Rourke is preparing to run for governor of Texas in 2022, with an announcement expected later this year, Texas political operatives tell Axios.

Why it matters: O'Rourke's entry would give Democrats a high-profile candidate with a national fundraising network to challenge Republican Gov. Greg Abbott — and give O’Rourke, a former three-term congressman from El Paso and 2020 presidential candidate and voting rights activist, a path to a political comeback.

Texas doctor says he performed an abortion in violation of state law

Pro-choice protesters march down Congress Avenue and back to the Texas state capitol in Austin, Texas, in July 2021. Photo: Erich Schlegel/Getty Images

A Texas doctor disclosed in an op-ed in the Washington Post on Saturday that he has performed an abortion in violation of the state's restrictive new abortion law, which effectively bans the procedure after six weeks.

Why it matters: Alan Braid's op-ed is a direct disclosure that will very likely result in legal action, thereby setting it up as a potential test case for how the abortion ban will be litigated, notes the New York Times.

Mike Allen, author of AM
6 hours ago - Technology

Axios interview: Facebook to try for more transparency

Nick Clegg last year. Photo: Matthew Sobocinski/USA Today via Reuters

Nick Clegg, Facebook's vice president of global affairs, tells me the company will try to provide more data to outside researchers to scrutinize the health of activity on Facebook and Instagram, following The Wall Street Journal's brutal look at internal documents.

Driving the news: Clegg didn't say that in his public response to the series. So I called him to push for what Facebook will actually do differently given the new dangers raised by The Journal.