Sequoia Capital, one of Silicon Valley’s most prominent venture capital firms, is laying off its Washington, D.C.-based policy team and shuttering its office there, just as some tech-related companies try to increase their visibility in the U.S. capital after President Trump’s re-election.

The changes will take effect at the end of March and impact three full-time employees as well as policy fellows who worked with the firm. Sequoia confirmed the layoff while two sources familiar with the matter who requested anonymity because the topic is sensitive, said that the firm would close its Washington office. 

Sequoia says it had set up its small policy team five years ago—during the first Trump Administration—to advise its investment team and portfolio companies on regulatory issues, deepen its knowledge of the policy landscape, and strengthen its connections with global policymakers, experts, and think tanks. Don Vieira, who had held senior national security positions at the Department of Justice and House Permanent Select Committee on Intelligence, opened the office, according to his LinkedIn. Vieria will leave the firm as part of the changes. He did not respond to requests for comment.

“Thanks to [the policy group’s] strategic guidance and efforts, Sequoia is now well-positioned to carry these relationships in the U.S. and Europe forward,” a Sequoia spokesperson said. “To that end, we are sunsetting the dedicated policy function and closing our D.C. office at the end of March. We are grateful to the team for their contributions and impact.”

The changes at Sequoia are in contrast to tech companies that have been increasing their visibility in Washington, D.C. since President Trump’s re-election. Meta in January hired Joel Kaplan, former deputy chief of staff to former President George W. Bush, to head its global policy team and CEO Mark Zuckerburg has visited Trump at the White House and Mar-a-Lago.

Some other venture capital firms have been beefing up their presence in Washington, D.C. to help portfolio companies that operate in highly regulated or political industries like defense, crypto, or AI. Venture capital firm Andreessen Horowitz, for example, which has had several of its partners take official or advisory positions in the White House, recently hired Patrick McHenry, the former North Carolina congressman, and Matt Cronin, former Chief Investigative Counsel and Deputy General Counsel for the U.S. House Select Committee on Strategic Competition, as senior advisors to the firm. Last fall, before the election, General Catalyst launched what it calls the “General Catalyst Institute” to influence AI, healthcare, defense and intelligence, manufacturing, and energy policy.

Sequoia Capital has historically remained politically neutral as a firm, even though many of its partners individually express political views or make large donations to presidential candidates. Top partner Roelof Botha said last summer that he is not registered with either political party, but that he is “more focused on the policies that will drive entrepreneurship, job creation, and making sure that the United States stays ahead.” 

This story was originally featured on Fortune.com

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I was recently interviewed by Fortune on the debate around diversity, equity, and inclusion (DEI) programs. As the CEO of a nonprofit that represents shareholders, I approach the issue of human capital management from a financial and business perspective. After all, it is the fiduciary duty of investors and their representatives—among them asset and retirement fund managers—to reduce material risk and optimize long-term financial sustainability for all stakeholders.

In the interview, I stated that opponents of corporate diversity programs are forcing companies to “underperform.” I was pleased to see that over 1,000 comments were posted in places the interview appeared and that most proponents and detractors had more in common than they may realize. We all seem to agree that employees need to be hired and promoted based on “merit”—that people should be judged on their qualifications and work product, not gender, race, or ethnicity.

I also realized there’s a surprisingly simple way to bring people together on this divisive issue: using a common definition. I propose this one:

Diversity, equity, and inclusion (DEI) are organizational frameworks that seek to promote the fair treatment and full participation of all people based on merit.

Notice it doesn’t say that diversity is about creating “race quotas” or discriminating against white men (both are illegal). Diversity programs are meant to promote workers based on merit for “all people”—not just women, veterans, people with disabilities, and non-whites. Businesses need DEI to eliminate all-too common “glass ceilings” that override merit to block women and people of color from promotions that maximize business outcomes.

So how do we achieve meritocracy when the people making hiring and promotion decisions may have unconscious bias, as they are naturally more at ease and understand applicants who look like them, grew up in similar circumstances, and went to the same universities? How can viewpoints from different lived experiences help build high-performance teams to solve business problems? The answer is exposing bias with diversity training.

Nondiscrimination in corporations isn’t just an ethical or legal obligation, it’s good for business. At As You Sow, we analyzed 1.5 million data points measuring gender and race from 1,641 public companies over five years. We found an undeniable statistically significant correlation across sectors that teams with more diverse management outperformed teams with less diversity on eight financial metrics, including: enterprise value growth rate, free cash flow per share, return on invested capital (ROIC), and 10-year total revenue compound annual growth rate (CAGR). In short, if you look at the data, there is no doubt that greater diversity leads to financial outperformance. 

A thoughtful commenter of my interview correctly stated, “DEI increased excellence. It was normalized discrimination that sacrifices excellence.” Another added, “Organizations have found that diverse workforces are far more innovative and productive because they benefit from a wider range of thought patterns and experiences.” Given that the data shows greater diversity leads to financial outperformance, why so much resistance?

Studies show members of majority groups may perceive actual meritocracy as “zero-sum,” assuming if someone else makes gains that they will necessarily incur losses. Another common response is to deny the existence of discrimination in the corporation, or for white men to distance themselves from it personally by arguing they are unbiased. A level playing field may feel like punishment, especially for those used to “failing up.”

Much of the misinformation about DEI comes from conservative politicians and biased social media agitators pandering to those objections. They play to insecurities of white males because they know riling up the base is good for voter turnout. However, opposition to diversity efforts goes beyond healthy debate. A recent presidential executive order banning DEI from federal activities shows opponents aim to eliminate diversity by mandate.

For every company that rolls back an aspect of DEI, there are a thousand more continuing diversity programs. Because as JPMorgan Chase CEO Jamie Dimon recently said in defiance of political pressure, DEI is “proper and legal.” Management teams from Costco to Apple have publicly defended diversity programs as essential to their business. Why else would high-profile business leaders take a public stand despite likely political blowback?

When shareholder resolutions meant to end DEI programs were voted on at annual shareholder meetings this year at Deere, Costco, and Apple, more than 98% of investors rejected proposals calling for management to end current diversity efforts. That’s because unlike politicians and online agitators, investors and their representatives have a legal duty to support programs that increase shareholder value.

I often get asked if DEI is on the way out. The acronym may change and there may be fewer references in public reports due to attacks on free speech, but diversity that creates a meritocratic culture and delivers positive business results will never be eliminated. If there’s one thing corporations can be counted on to do, it’s to maximize profits.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Read more:

• ‘DEI’ might be a blip in history—but the value of diversity and inclusion will persist
• Attacks on DEI assume a level playing field where none exists—and threaten America’s future prosperity
• Trump’s DOJ can’t rewrite the law on DEI. Here’s why companies shouldn’t back down
• Nearly half of company leaders say they plan to stick with their DEI policies despite the Trump-fueled backlash

This story was originally featured on Fortune.com

World Liberty Financial, the decentralized finance platform backed by President Donald Trump, announced this week that it has raised a total of $550 million in a series of token sales.

“This milestone proves that those who truly understand crypto and finance recognize what we’re building—and that WLFI is on track to supercharge DeFi as it transforms global finance in the coming years,” Zach Witkoff, cofounder of World Liberty Financial, said in a statement earlier this week. 

The company sold $300 and $250 million worth of Ethereum, Bitcoin, Tron, Ondo, Sui, and other cryptocurrencies. The purchases are part of its strategic token reserve which “helps strengthen leading cryptocurrency projects while providing stability to its treasury through diversification before ultimate disposition,” the company said in a statement. 

World Liberty Financial also says it has “established key relationships” with major players in the crypto space including other decentralized finance platforms like ONDO Finance, Sui, and Aave. Justin Sun, the founder of Tron blockchain, has invested $75 million in World Liberty Financial since Trump’s election in November. 

“The token sales are just the beginning,” Witkoff said in a statement this week. “We’re gearing up to launch a wave of disruptive technology that will redefine the boundaries of what’s possible with digital assets.”

This story was originally featured on Fortune.com

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