Maguire, an American venture capitalist with close ties to X owner Elon Musk,wrote in a July post on the platform: “Mamdani comes from a culture that lies about everything. It’s literally a virtue to lie if it advances his Islamist agenda. The West will learn this lesson the hard way.”

According to the FT, Balbale raised her concerns with senior partners at Sequoia, one of the world's biggest venture capital companies, but the firm declined to take action against Maguire, saying that he had the right to free speech. She resigned shortly after, citing her role as untenable.

Maguire’s comments also prompted over a thousand founders and tech professionals to sign anopen letterin July, demanding Maguire face disciplinary action.

The letter urged Sequoia to issue an “immediate public condemnation and apology”, to commission “an independent investigation into Maguire’s conduct over the past two years”, and to “unequivocally denounce Maguire’s remarks as hate speech and anti-Muslim bigotry”.

It added that Maguire had a "documented pattern of anti-Muslim rhetoric over the past two years" which "has caused significant harm to the global tech community".

The signatoriesnoted that Sequoia has chosen not to respond, neither to them nor to the press.

"The fact that the most influential VC firm in our industry is unwilling to publicly reject hate and quietly allow it to persist within its leadership speaks volumes," the letter stated.

According to the FT, Balbale's resignation "caused consternation among staff and portfolio companies". 

Moreover, Maguire's posts and the ensuing row have "soured" the venture capital firm's relationship with some top investors from the Middle East, the FT said. 

One financiertold the FT: “A lot of sovereign wealth funds from this part of the world are not going to work with this guy, that’s for sure... he is not welcome here."

'Principled leadership'

Balbale’s decision to resign has drawn widespread praise across social media, where many described her move as inspirational and courageous, with several users saying it showed integrity and a refusal to accept the normalisation of hate.

“You are an inspiration Sumaiya Balbale… Your courage to stand up liberates others from the fear that keeps them in the silent majority,” a userwrote on X.

“Surprise: when you're racist, people quit," posted Paul Biggar, the founder of Tech For Palestine.

“Moral actions, that’s what principled leadership looks like, thank you Sumaiya Balbale for showing the rest how it should be done,” a userwrote. 

Balbale, who is also on the board of Shake Shack, has spoken in the past about being a practising Muslim woman, and how hergender, ethnicity and faithhave shaped her roles in different industries.

Middle East Eye has reached out to Sequoia Capital, Balbale and Maguire for comment.