A billionaire venture capitalist and partner at Sequoia Capital has blasted San Francisco’s seedy, drug-addled downtown — lambasting the city’s Democrat leadership that “bans plastic straws but permits plastic needles.”
“It’s a strange city that bans plastic straws but permits plastic needles. Yet that’s San Francisco today,” Michael Moritz, 68, seethed in a fiery op-ed published in the Financial Times on Wednesday.
“Between 2020 and 2022, 1,985 people here have died from drug overdoses compared to 1,143 from Covid-19,” he added.
The former journalist-turned-investor said rampant and unchecked drug use has turned the City by the Bay into a “zombie” land.
“Fentanyl, the synthetic drug that is 50 times more powerful than and a fraction of the cost of heroin, has turned many blocks of the city into zombie zones,” Moritz wrote.
Moritz provided a lengthy list of the issues plaguing San Francisco, including “the highest commercial office vacancy rates of any big city in the US” and “a public school system whose enrollment has fallen and which has only 55 percent English proficiency and 46 percent maths proficiency.”
The venture capitalist also decried the sky-high housing costs that make the city “prohibitively expensive for all but the wealthy.”
Michael Moritz says the City by the Bay has turned into a “zombie” land. Bloomberg via Getty ImagesThe median price of a home in San Francisco in December 2022 was $1.3M — more than three times the national median house price, according to RedFin.
By comparison, the median price of a home in New York is $789,000 and in Los Angeles it is $917,500, according to statistics from the real estate company.
Moritz argued that much of San Francisco’s issues stem from the drug and homelessness problem, urging the city’s Democratic mayor, London Breed, to address these key issues immediately.
“But without tackling San Francisco’s open-air drug markets and homeless encampments, efforts to solve these problems will be fruitless,” he wrote.
“Beyond the shocking waste of potential, the drug use and homeless tents consume an enormous part of San Francisco’s annual $13.95bn budget,” he continued.
“Direct city spending on homelessness has risen from about $200mn for the fiscal year 2016 to $680mn this year.”
More people died from drug overdoses than COVID-19 between 2020 and 2022 in downtown San Francisco. Anadolu Agency via Getty ImagesHomelessness in San Francisco rose by 38% in the decade from 2009 to 2019, according to official figures. In 2022, more than 7,700 San Franciscans were experiencing homelessness.
Moritz argued that local propositions, lack of voter turnout and politicians who exploit malleable term limits prevent the big kind of change required to make a difference.
“None of this has happened overnight — it’s a situation that has built up over decades and to which state and federal policies have contributed. But much of it is the result of skillful politicking,” he said.
“San Francisco’s drug and homeless crisis can be solved, but that would mean changes to the mechanics of government and coordinated political will.”
From 2009 to 2019, homelessness rose by more than 30% in San Francisco. San Francisco Chronicle via GettIn order for the major California metropolis to move forward, Moritz argued, the city’s leaders must ensure “persistent pursuit of harm-reduction programs, sufficient public shelters, commitment for treatment for those who are a danger to themselves and others, visible policing, a judiciary that enforces the law and — most of all — a change in the armature of government.”
Sequoia Capital is headquartered in Menlo Park, an area just south of downtown.






