Sequoia is closing its London office after six years. The Silicon Valley firm, which has backed European companies like Ineffable Intelligence and Stark, says it can still support Europe's best founders from the Bay Area. Its European scout programme is being cut, and three of its four London partners are staying in Europe rather than moving to California.

On this episode of the Sifted Podcast, senior reporter Anne Sraders tells guest host Daphné Leprince-Ringuet why Sequoia is refocusing on San Francisco as the AI boom pulls capital to the Bay Area, and why other European VCs are also following suit. She explains what Sifted data shows about Sequoia’s European dealmaking: 12 announced primary rounds so far this year, down from 18 at this point in 2025 but up from 10 in 2024. She also explains why Sequoia feels confident it can cover Europe from abroad. The pair also discuss how founders and VCs have reacted, from talk of "managed decline" to claims that people are overreacting. They ask whether Europe still relies too heavily on US money for big rounds, and whether Sequoia's exit opens the door for local investors.

Read Anne's story on Sequoia's exit.

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This episode was sponsored by Chargebee — billing, metering, and monetisation infrastructure for fast-scaling AI-native startups and enterprises.