Equities

Reuters reveals Sequoia China to cut up to 20 percent of investment staff as tech growth slows

Reuters reveals Sequoia China to cut up to 20 percent of investment staff as tech growth slows

Reuters reported exclusively that Sequoia Capital China, widely viewed as a bellwether for Chinese tech investment, is set to lay off as much as 20 percent of its investment staff as a slowdown in the country’s tech sector saps appetite for risk. The layoffs would come after a government campaign against debt financing left start-ups vying for shrinking pools of fresh capital. Meanwhile disappointing returns from firms going public amid market volatility has made investors bearish, resulting in down rounds – where a firm’s valuation in a round of fundraising falls below that of a previous round.