Venture Firm Under Fire for Partner’s Islamophobic Comments on Mamdani

• Startup founders view Maguire’s comments as a “provocative attack.”
• Maguire doubles down, labeling Mamdani a “wolf in sheep’s clothing.”
• The Sequoia partner defends his statements, claiming they target Islamists only.

Sequoia Capital, a major player in venture capital, is under significant scrutiny from the tech community following controversial remarks made by partner Shaun Maguire about New York City mayoral candidate Zohran Mamdani, according to The New York Times.

On July 4, Maguire took to X to accuse Mamdani of pushing an “Islamist agenda” and being part of a “culture that lies about everything.”

His remarks, widely criticized as Islamophobic, ignited backlash within the tech ecosystem.

More than 1,100 tech professionals and startup founders signed an open letter demanding that Sequoia discipline Maguire, as reported by the publication.

The letter described his comments as a “deliberate, inflammatory attack” that perpetuates anti-Muslim stereotypes, and at least one company that endorsed it has ties to Sequoia.

In a follow-up video, Maguire reiterated his position, branding Mamdani as “an Islamist” and “a wolf in sheep’s clothing.” He tried to clarify that he was speaking against Islamists and issued a partial apology “to any Muslim who is not an Islamist.”

While Sequoia has yet to release an official statement, internal emails obtained by The New York Times indicate that senior partner Doug Leone defended Maguire’s comments, asserting they were not a critique of Muslims as a whole.

Partner Pat Grady acknowledged the situation, emphasizing Sequoia’s commitment to “aggressive truth-seeking” and a “healthy conflict of ideas.”

This controversy has shadowed Sequoia’s managing partner, Roelof Botha, at major events, including the recent Allen & Company conference in Sun Valley, where he was repeatedly questioned about the matter.

Founded in 1972, Sequoia Capital is a leading venture firm in Silicon Valley, known for investments in giants like Google, Apple, Nvidia, and SpaceX. Typically seen as politically neutral, the firm is now caught in deepening cultural and political disputes.

While some stakeholders demand accountability for Maguire, others express support for him.

A counter-letter supporting Maguire garnered over 1,000 signatures, including influential investors like Bill Ackman. Supporters have described him as a “principled thinker” who has made valuable contributions to the startup community.

In light of growing tensions, activist groups are urging Sequoia’s institutional backers—including the University of Michigan and Duke University—to take action and hold the firm accountable.