The Information's TITV Why Sequoia's China Spinoff is Struggling, Plus Apple's AI M&A Strategy | Aug 26, 2025
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Aug 26, 2025 
Jing Yang, Asia Bureau Chief at The Information, shares insights on Sequoia China's spinoff Hongshan and its $9 billion capital slow roll-out amid geopolitical shifts. Jesse Zhang, CEO of Decagon, reveals his vision for AI agents transforming customer service. The discussion digs into Apple's cautious approach to M&A in the AI landscape and the exciting shift from electronic to light-based AI chips, highlighting their energy efficiency and potential to revolutionize data processing in AI. Expect a blend of technology, investment strategies, and innovative ideas!
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Sequoia China’s Early Win Track Record
- Sequoia China (now Hongshan) built massive returns by spotting early winners like ByteDance, Meituan, and PDD.
- That historical success made Neil Shen the most celebrated VC in China and set high expectations for future funds.
$8.8B War Chest, Slow Deployment
- Hongshan raised $8.8 billion and has deployed only about a quarter of it three years later.
- That pace is unusually slow compared with Sequoia China’s historical deployment cycles and merits scrutiny.
Macro Forces Slowed Growth Deals
- Hongshan’s original fund was mostly earmarked for growth and expansion-stage deals that largely vanished after 2022.
- Weak public markets and a muted China rebound removed many large late-stage financing opportunities.