Muslim and Middle Eastern tech founders rally against anti-Muslim rhetoric in VC world, demanding accountability from one of Silicon Valley’s most powerful firms.
The global tech community is grappling with the fallout from a prominent venture capitalist’s controversial remarks, which have exposed deep-seated concerns about Islamophobia within Silicon Valley. Shaun Maguire, a partner at the influential venture capital firm Sequoia Capital, has sparked widespread outrage after posting inflammatory comments on social media earlier this month about New York mayoral candidate Zohran Mamdani.
Maguire labeled Mamdani an “Islamist” and claimed he “comes from a culture that lies about everything,” in a now-viral post viewed more than 5.6 million times on X (formerly Twitter). The remarks came in response to a New York Times report on Mamdani’s 2009 Columbia University application, which listed his ethnicity as both “Asian” and “Black or African American.”
Rather than retracting his words, Maguire has since doubled down, publishing a follow-up video defending his stance. He claimed his comments were directed at “Islamists,” not all Muslims, and expressed regret to “Indians or Muslims who aren’t Islamists.” However, many found his explanation insufficient and offensive, as he continued to make allegations about Mamdani defending terrorists and yearning for a “third Intifada,” even extending criticism to Mamdani’s father, renowned scholar Mahmood Mamdani.
Backlash from the Global Tech Community
The backlash was swift and significant. More than 1,100 entrepreneurs, founders, and executives have signed an open letter demanding Sequoia take disciplinary action against Maguire and issue a public apology. The signatories include tech leaders from across the U.S., Middle East, and beyond, united by a concern that such statements from a top-tier firm set a dangerous precedent.
“His comments struck a chord with a lot of people, just because of the fact that he wasn’t at some no-name shop. It was Sequoia,” said Hosam Arab, co-founder and CEO of Gulf fintech Tabby, which had previously received funding from Sequoia India before it was spun off in 2024.
Arab emphasized that Maguire may not be alone in holding such views but is certainly “the loudest, most vocal, most consistent” voice among venture capitalists expressing them publicly.
Islamophobia in Focus
This controversy has not only fueled concern over Maguire’s rhetoric but also highlighted broader issues of Islamophobia in the tech and finance industries. The Council on American-Islamic Relations (CAIR) issued a statement citing Maguire’s long history of anti-Muslim posts, including labeling a video of a child killed in Gaza as a “doll,” calling the United Nations a “terrorist organization,” and reposting content from known Islamophobic figures like Laura Loomer.
The UN has already warned of “alarming” levels of Islamophobia worldwide in 2024, and CAIR reported 8,658 anti-Muslim complaints in 2024 alone—its highest annual figure since 1996.
One unnamed founder who signed the letter against Maguire noted, “He’s clearly targeting certain Muslim figures, spending 30 minutes attempting to explain what his definition of Islam is… That should not be the stance of the premier venture capital firm in the world.”
Sequoia’s Silence and Investor Pressure
Despite repeated requests, Sequoia Capital has not issued a public comment. In response, some letter signatories have threatened to escalate the matter by contacting Sequoia’s limited partners—wealthy family offices and sovereign wealth funds that finance VC firms but are typically silent stakeholders.
“Anything short of these measures signals tacit acceptance of anti-Muslim hate and racism,” the letter reads. “As the leading venture firm that shapes the future of technology and entrepreneurship globally, Sequoia’s response will define whether you stand on the side of inclusion or complicity.”
Though boycotting Sequoia’s funding may seem unlikely for many startups, particularly those in emerging markets, the letter’s supporters say symbolic resistance is critical. “As founders building the future of technology, we cannot accept leadership from a firm whose partners engage in hate speech and spread bigotry,” the letter continues.
The Broader Impact on Middle Eastern Tech Ecosystems
The Middle East has grown into a significant player in the global venture space, with sovereign wealth funds and firms like Sequoia India investing heavily in regional startups such as Saudi Arabia’s Lean Technologies and Egypt’s Telda.
For Middle Eastern founders, Maguire’s comments are more than personal—they reflect a systemic issue. “We all looked up to Sequoia for being colorblind and merit-based,” said one founder. “That’s why this episode is even more shocking.”
While some anonymous voices in the tech world have dismissed the incident as one man’s opinion, others see silence from institutions like Sequoia as a tacit endorsement of dangerous rhetoric.
Zohran Mamdani and the Political Undercurrent
At the center of the controversy is Zohran Mamdani, a Democratic Socialist and city council member running to become New York’s first Muslim mayor. Mamdani’s critics have focused on his views regarding Israel and Palestine, including his refusal to condemn the phrase “globalize the intifada.” He has explained that while he personally wouldn’t use the phrase, he sees it as a call for Palestinian human rights, not violence.
On the campaign trail, Mamdani has faced threats and bigoted attacks, stating in June: “I get messages that say the only good Muslim is a dead Muslim… I’m characterized as being a monster, a barbarian looking to dismantle a civilization.”
Despite the controversy, Mamdani has not commented publicly on Maguire’s remarks.
Division Within the Industry
The tech world remains divided. Some have voiced support for Maguire. Fellow Sequoia partner Pat Grady published a defense, describing Maguire as a “principled thinker” navigating “complex waters,” though he also reiterated support for the Muslim community.
A separate pro-Maguire letter has reportedly received over 1,400 signatures, defending his right to express political views without being labeled as spreading hate.
What Comes Next?
Whether or not Sequoia takes action, the debate has undeniably forced Silicon Valley to confront its values. With the global tech community watching closely, the firm’s next move—or lack thereof—may shape its legacy for years to come.
This episode is a stark reminder that leadership in venture capital is not only about choosing the next unicorn startup—it’s also about modeling the ethics and inclusion the future of tech demands.
