Sequoia Capital, one of the most prominent venture capital firms in Silicon Valley, is closing its Washington D.C. office and disbanding its policy team, TechCrunch has confirmed. The move, which will take effect at the end of March, marks a significant shift in focus for the firm, which had established the office five years ago to support its portfolio companies with regulatory issues and deepen its relationships with policymakers.

The news comes as a surprise, particularly given the current political climate in the United States. Other prominent VC firms, such as Andreessen Horowitz, have been strengthening their ties with Capitol Hill and the new Trump administration. For instance, Andreessen Horowitz recently hired former Republican congressman Patrick McHenry as an advisor, highlighting the growing importance of policy influence in the tech industry.

According to a Sequoia spokesperson, the decision to close the D.C. office and disband the policy team is a result of the "strategic guidance and efforts" of the policy team, which has enabled the firm to "bolster relationships and knowledge" in the U.S. and Europe. The spokesperson expressed gratitude to the team for their contributions and impact, but did not provide further details on the reasons behind the move.

The changes will impact the policy fellows at the firm, as well as three full-time employees, sources told Fortune, which was first to report the news. While Sequoia is typically politically neutral, its partners have previously expressed political views. Notably, Shaun Maguire, a partner at the firm, is an outspoken supporter of President Trump and is reportedly helping screen candidates for the Department of Justice.

The move raises questions about Sequoia's strategy going forward, particularly given the growing importance of policy influence in the tech industry. With other firms strengthening their ties with Capitol Hill, Sequoia's decision to disband its policy team may be seen as a departure from the industry trend. However, it is possible that the firm is shifting its focus to other areas, such as European policy or regulatory issues specific to its portfolio companies.

Regardless of the reasons behind the move, the closure of Sequoia's D.C. office and disbandment of its policy team marks a significant development in the venture capital industry. As the tech industry continues to evolve and grow, the importance of policy influence and regulatory guidance is likely to increase. It remains to be seen how Sequoia's decision will impact its relationships with policymakers and its portfolio companies, but one thing is clear: the firm is charting a new course, one that diverges from the industry trend.