Breaking its silence over controversy at fintech firm BharatPe, Sequoia Capital on Sunday said it has zero tolerance towards proven wrongdoing and will continue to respond strongly to wilful misconduct or fraud.
Sequoia, which is the largest shareholder in BharatPe where co-founder Ashneer Grover was virtually sacked from his role, in a blog said it won't hesitate to act to protect the interest of shareholders and employees even if it costs it financially.
"We will take tough calls where needed in the interest of doing what is right," it said without directly mentioning BharatPe. The American venture capital firm said it wants companies that are not just valuable but also enduring.
"Recently some portfolio founders have been under investigation for potential fraudulent practices or poor governance. These allegations are deeply disturbing," it said. "We have always strongly encouraged founders to play the long game. We focus on the enduring, and discourage focussing on vanity metrics."
Startup ecosystem needs guardrails so that a few errant founders don't create big setbacks, it added.
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(Published 17 April 2022, 12:41 IST)
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