According to Fortune, Sequoia Capital has appointed Alfred Lin and Pat Grady as co-stewards, replacing Roelof Botha who steps down at age 52 after nearly a decade leading the firm. Botha had been sole steward since 2022, but this marks Sequoia’s fifth generational transfer in its 53-year history. Lin has led the firm’s early stage investing since 2017 while Grady has steered growth stage investing since 2015, with both having backed OpenAI. The leadership change comes as the venture industry faces political tensions and structural shifts, with Sequoia managing over $50 billion in assets while maintaining just over 20 investors consistently over time.
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Lin’s approach to extreme tension
What’s fascinating about this transition is how perfectly Lin’s investment philosophy aligns with the moment Sequoia finds itself in. He talks about holding ideas in “extreme tension” as the only path to truth, arguing that starting from extremes and working toward the middle helps you consider every possibility. Basically, don’t settle for the obvious middle ground right away. Explore the edges first.
And that’s exactly what Sequoia needs right now. The firm has to navigate some pretty intense contradictions – it’s a $50+ billion behemoth that still wants to act like a nimble, focused partnership. It maintains institutional neutrality while its partners have strong political views. The whole industry is splitting into massive asset managers and tiny specialist shops, and Sequoia somehow needs to be both.
Why this change makes sense
Now, Botha stepping down at 52 might seem surprising on the surface. He’s young, he’s been successful, and he’s backed some of Sequoia’s biggest wins like YouTube and Instagram. But here’s the thing – Sequoia has always been ruthless about succession planning. They’ve done this four times before over five decades, and co-stewards have been more common than solo leaders.
What makes Lin and Grady such a compelling duo is their complementary backgrounds. Lin came from the operator side – he was chairman and COO at Zappos through its Amazon acquisition. Grady came up through the VC ranks, joining Sequoia back in 2007. Both have these authentic outsider stories too – Lin’s parents immigrated from Taiwan, Grady grew up in Wyoming coal country. They didn’t just emerge fully formed from Sand Hill Road.
The political tightrope
This might be their biggest challenge. Venture capital is getting increasingly political, and firms are taking very different approaches. Andreessen Horowitz has fully embraced being political actors, while others try to stay completely out of it. Sequoia has historically walked this middle path – institutional neutrality with partner-level freedom.
But does that still work in 2024? The firm’s history shows it can handle political diversity – Michael Moritz was famously Democratic while Doug Leone was Republican. Yet today’s political environment feels different. More polarized. More intense. Can you really maintain neutrality when every investment decision gets scrutinized through political lenses?
Looking ahead
So what does this mean for Sequoia’s future? Lin and Grady are taking over at what might be the most complex moment in venture capital history. The industry is transforming, returns are harder to come by, and political pressures are intensifying. But if anyone can navigate this, it’s probably these two.
Lin’s philosophy of exploring extremes might be exactly what’s needed. Don’t just settle for the obvious path. Consider all the possibilities. Hold the tensions. And maybe, just maybe, they’ll find that sweet spot in the middle that keeps Sequoia at the top for another generation. The whole industry will be watching to see if this legendary firm can maintain its magic touch. You can follow the ongoing conversation about venture leadership on Twitter and watch deeper discussions about the future of tech investing on YouTube.
