Sicoya bets on silence Techcrunch

There is a strategy for managing time reservation, as one says nothing and anger is expected to pass. For Sequoia Capital, the strategy worked well this week. While partner Sean Maguire initially Criticism survived During a publication of inflammatory social media, this initial discontent was quickly cooled. Now, it seems that some believe that Maguire United’s position may enhance its position. Business Insider actually called it.Good to flow the deal– Controversy as a competitive feature.

The calculated gambling of Sekoya carries real risks. Another provocative position of Maguire, who strikes the wrong nerve, turns into political winds, or the consequences of escalation that can quickly convert its non -healing partner from one of the assets to a responsibility that the company cannot ignore.

This editor, a professional in Crisis Communications, tells the reputable disasters of dozens of major brands, “companies like lead resistor so that they are not so.”

What happened

Sikoya’s testing approach was laid earlier this week when the adventure company found the same floors in the eye of the storm about Maguire’s comments about the mayor of New York City mayor Zahran Mamdani. It was called “Islamic”, which “comes from a culture that lies in everything” on July 4 tweet On X, which has been seen more than five million times ago. More than a thousand signatures have been poured out since then Seam Claiming Sequoia will condemn notes, investigate Maguire’s behavior, and apologize.

There was a lot of talk about the reason why Sikoya did not do so, as many outlets noted that Maguer was not just a partner. This situation is partially condemned by his friendship with the co -founder of the Patrick Koleson. According to reports, at the 2015 Fund Fund event, Maguire- a businessman supported by the founders-in-laws in the argument with the Palmer Luckey from Anduril about the quantum computing, and received the friendship of Colison. The connection proved value when Maguire joined Google Ventures in 2016; Help secure an investment of a $ 20 million bar during its first week. When Maguire Google Ventures left in 2019, Colison personally recommended SEQUOIA partners. (Stripe has been in Sequoia’s portfolio since then 2010With the company’s investment More than 500 million dollars More than 15 years.)

Maguire also led Sequoia investments in Bridge, which is the STRIPE $ 1.1 billionAnd according to what Sikoya is related to Eileon Musk, although this may be somewhat exaggerated. The global administrative director of Musk and Sequoia, Roelof Botha, both of them are indigenous South Africa and have known each other for more than 25 years, and they return to their time together in the young Paypal at that time, where Botha was recruited personally by Musk.

Despite that long relationship, the two did not always see face face. Botha was strongly criticizing the MUSK management style when Musk was the CEO of X.com/paypal, where Botha was financial manager. Batha It was said once Veteran journalist Ibbi Domis, “I think it would have been killing the company if Elon, CEO, remained for another six months. The mistakes made by Elon at that time were the risk of work.” But musk was at odds with a full crew at that time, and these tensions have led a long time ago It has been resolved.

The biggest point here: When you run tens of billions of dollars in assets and your company’s reputation is based on supporters such as Google, Stripe and Nvidia, you do not easily touch the rain maker.

Meanwhile, Maguire’s behavior indicates that it does not retreat. After the release of a Video of 30 minutes At the weekend last weekend in which he apologized for the insult to many – saying that he was referring to a political ideology and not about a religion – it has increased with increasingly aggressive functions this week. He claimed that he was “the opposite of the engineering” of the “leadership structure” and threatened to “embarrass” anyone who is escalating against him. He added that this is in “1 % suffocating” and warned people against “curse on Internet children.”

Silent treatment

Sikoya has a precedent for its approach in this position. The company has historically gave the space of its partners to express themselves publicly, with personalities like Doug Lyon and Michael Moritz (from Leave In 2023) it represents different political views.

But there is a decisive difference between political diversity and burning discourse clearly and for some, Maguire comments go beyond party policy into lands that alienate both political opponents and potential commercial partners.

It should also be noted that even for Sequoia, there is a bright line. Michael Jojwin, a Ring maker earlier with the company, was immediately Show When Sikoya learned about the issues of sexual assault against him. Plasis are barely comparable. Googuen issues were legal, personal, not ideological. At the same time, Sequoia showed that he is not ready for the vehicle circle at any cost, and not if it was at stake.

It is assumed that many factors report Sequoia strategy that nothing, including the speed faced by people, with a continuous group of news, of a scandal. The company is also working in a different political scene now in the United States along with Donald Trump’s victory and the decline in Dei initiatives, as a new tolerance of controversial discourse. What may be a professional end in time in time is now more easily.

It is also possible that the company is a banking company on the fact that although the founders want partners that fit with the traditional VC template, they want more successful partners. You may not like startups that are destroyed by many higher -level companies or agree with Maguire, but when Sequoia comes with their busy record and almost endless pockets, most of the company’s founders welcome open arms.

There is also a very real possibility that Sequoia will work on the emergency plan. (Sequoia refused to comment on Maguire’s posts when accessed by Techcrunch earlier this week.)

However, Sikoya’s silence carries risks. Not all the two positions have been confirmed, but the petition against Maguire includes the names of some executives and prominent founders in the Middle East who witnessed its signature, and they represent a kind of a variety of global talents that drive innovation. By not addressing the controversy, Sekoya risks that he suffers from Maguire implicit opinions.

In other words, although the world of investment capital was significantly tolerated Controversial With the flow of the exceptional deal, the company leads a gambling with its reputation in an increasingly global market as it carries the alienation of the entire regions and societies.

Whether this bets pays its fruits it will depend on the period in which the controversy lasts, and the amount of actions it actually costs Sikoya, and whether Maguire can resist the desire to pay things somewhat at the threshold of tolerance in Sikoya. (He said that he does not publish anything that was not. “I thought abroad. “))

History indicates that financial companies created with strong tracking records tend to overcome their scandals, even dangerous companies. When Leon Black from Apollo International He resigned in 2021 More than 158 million dollars paid to Jeffrey Epstein, the company’s shares barely moved and the shareholders seemed largely unbroken. Apollo just continued to make an aggressive deal under a new leadership.

Likewise, Clener Berkins survived Gender discrimination A lawsuit in 2015. But it took years and mainly A completely new team For the adventure company, the floors to restore its foot in the hierarchical sequence of the Silicon Valley. The lesson here may be that although controversial partners can be tolerated, the recovery schedules can vary greatly depending on how to deal with companies with the crisis.

At the present time, at the Crisis Communications professional, who requested not to name it, some tips for Maguire, and thus Sequoia. Regarding the video posted by Maguire in the wake of his initial comments, the expert said: “I think the apology was taking mystery in the Maguire. But it is a 30-minute video-you should be really interested in watching this.”

If there is next time, the professional said, Maguire must “perform videos – one for three minutes” and another longer video, for anyone who wants to continue watching.

Sometimes, the expert added, “less”.