Sequoia’s founding member in China resigns

Zhang Fan has resigned from Sequoia Capital China after four years at its helm. In 2005, he co-founded the affiliate with Neil Shen, who is reportedly embroiled in litigation with The Carlyle Group. Carlyle has alleged the rival firm backdated an investment agreement to win a deal.

Zhang Fan, a founding managing partner of Sequoia Capital China, the US venture capital firm’s Chinese affiliate, resigned from the firm in late January 2009.

He led investments in companies such as Accelergy, a research and technology company; Asia Media, an electronic program guide technology company; and Key Global, a developer and marketer of in-vitro diagnostics reagents.

In September 2008, Asia Media was forced to delist from the Tokyo Stock Exchange after its founder resigned, allegedly saying he had misallocated company capital, according to Reuters.

Zhang founded Sequoia Capital China with fellow founding managing partner Neil Shen in 2005. Shen is currently the subject of a reported lawsuit filed by global buyout firm The Carlyle Group, which alleges the backdating an investment agreement.

Prior to Sequoia Capital China, Zhang worked at private equity firm DFJ ePlanet Ventures and Goldman Sachs Asia’s investment banking division.

Zhang did not return requests for comment.