Roelof Botha steps down as head of Sequoia Capital — Roelof Botha

Roelof Botha, the South African venture capitalist who has enjoyed significant success in the US, is stepping down as managing partner of Sequoia Capital.

The Financial Times reported on Wednesday (paywall) that his resignation followed a period marked by internal strife at the storied American venture capital firm.

Sequoia, founded in 1972, is one of the world’s most successful venture firms, having backed Apple, Google, YouTube and Stripe, among many others.

In a letter to staff, Botha — the grandson of the late South African foreign minister Pik Botha — said it was time to pass the torch to a new generation, consistent with the firm’s tradition of leadership succession.

Botha, a member of the famed “PayPal mafia” and one of South Africa’s most prominent tech figures, will remain with Sequoia as an adviser and retain his board positions.

His successors, Alfred Lin and Pat Grady, will jointly oversee the firm. Lin has co-led Sequoia’s early-stage investments since 2017, while Grady has managed its late-stage business since 2015. Both are long-time lieutenants known for their operational focus and hands-on company-building approach.

Botha’s leadership coincided with turbulence inside the firm, including the departure of chief operating officer Sumaiya Balbale following controversy over social media posts by partner Shaun Maguire, which she viewed as Islamophobic. Tensions also flared between Botha and former Sequoia chief Michael Moritz during a dispute over Klarna’s board representation, though Botha later backed down.

‘PayPal mafia’

Botha was born in Cape Town in 1973 and studied actuarial science at the University of Cape Town before leaving South Africa in the late 1990s to pursue an MBA at Stanford. His early career included a stint at McKinsey & Company, but his real break came when he joined PayPal, where he rose to chief financial officer and worked closely with Elon Musk and Peter Thiel. That experience placed him in the heart of what became known as the “PayPal mafia” – a network of entrepreneurs and investors who went on to shape Silicon Valley.