Sequoia Capital China has reportedly initiated preliminary discussions with investors regarding several new funds, including its first dollar-denominated fund since breaking away from the global Sequoia brand. According to sources familiar with the matter, the investment firm is in talks to raise at least $1.2 billion for an early-stage venture fund aimed at backing companies in the artificial intelligence, healthcare, and consumer sectors.

The fundraising effort, led by Shen Nanpeng, who has steered the firm since 2005, will test the enduring appeal of one of China's most established investment institutions. Beyond the early-stage vehicle, the firm is also exploring the creation of a growth fund, though the timing and scale of that initiative have yet to be finalized. Additionally, one source noted that a renminbi-denominated fund is also under consideration.

The three entities that once operated under the Sequoia umbrella had already been operating largely independently, with one focused on the US and Europe, another on China, and a third on India and Southeast Asia. Following the split, the China arm adopted the English name HSG and has since invested in emerging AI companies such as Unitree Robotics, MiniMax, and Moonshot AI.

According to insiders, the new fund will continue to concentrate on the Chinese market, while remaining open to opportunities abroad. Since going independent, HSG has established an office in London and acquired a majority stake in audio equipment manufacturer Marshall, a deal valued at approximately $1.1 billion.