Sequoia Publishes 'Context for Agents at Scale' Thesis: Enterprise Agents Fail on Knowledge, Not Capability

Sequoia Capital·medium signal

Sequoia Capital's March 18 investment memo for Edra explicitly frames the firm's 2026 conviction: long-horizon agents capable of sustained, goal-directed work are 'functionally AGI' and enterprise deployment will define 2026. The memo argues that agent failures in production are not capability failures but knowledge failures — agents lack grounded organizational context — and that the winning architecture extracts that context from existing company data rather than relying on general-purpose training. Sequoia positioned this 'context for agents at scale' pattern as the defining infrastructure gap across ITSM, support, and operational workflows.