Apple, Google, YouTube, Instagram, PayPal, Zoom, Nvidia, …
All these companies have one thing in common.
They were backed by the same Venture Capital Firm.
Sequoia Capital.
This is the story of one of the most successful VC companies of all time. 👇🏼
All these companies have one thing in common.
They were backed by the same Venture Capital Firm.
Sequoia Capital.
This is the story of one of the most successful VC companies of all time. 👇🏼
The founder of Sequoia was Don Valentine.
Who was born in the Bronx in 1932.
Later in his life, he shall be known as the “grandfather of Silicon Valley venture capital”.
The reason for that is the firm he founded in 1972, Sequoia Capital.
Who was born in the Bronx in 1932.
Later in his life, he shall be known as the “grandfather of Silicon Valley venture capital”.
The reason for that is the firm he founded in 1972, Sequoia Capital.
Sequoia focuses on early investments in small tech companies. High-risk investments.
One of the companies Valentine invested in was Apple Inc.
He met Steve Jobs and decided to invest $150,000 into Apple in 1978.
Only two years after Apple was founded.
One of the companies Valentine invested in was Apple Inc.
He met Steve Jobs and decided to invest $150,000 into Apple in 1978.
Only two years after Apple was founded.
Besides Apple, Sequoia also made early investments in Cisco, Electronic Arts, Google, YouTube, and many other companies.
Many of these new investments were made by the two managers that followed after Don Valentine.
Doug Leone and Michael Moritz.
Many of these new investments were made by the two managers that followed after Don Valentine.
Doug Leone and Michael Moritz.
Both, Michael and Doug, were personally hired by Don Valentine.
Michael was a journalist and writer for the Times Magazine before he got into Sequoia.
Doug worked all kinds of different jobs before.
According to Doug, Michael and him are two very different personalities.
Michael was a journalist and writer for the Times Magazine before he got into Sequoia.
Doug worked all kinds of different jobs before.
According to Doug, Michael and him are two very different personalities.
Yet, they were phenomenal at working together and made Sequoia what it is today.
A phenomenal VC firm that backed companies with a combined value of over 3 trillion dollars.
The best way to learn about how they lead Sequoia is by analyzing what they look for in their employees.
A phenomenal VC firm that backed companies with a combined value of over 3 trillion dollars.
The best way to learn about how they lead Sequoia is by analyzing what they look for in their employees.
The perfect candidate for Sequoia is someone who …
… comes from modest means.
… is smart (IQ and EQ) but didn’t took the typical pre-set path.
… is special / highly imperfect (not the quarterback or cheerleader).
… needs to win.
… comes from modest means.
… is smart (IQ and EQ) but didn’t took the typical pre-set path.
… is special / highly imperfect (not the quarterback or cheerleader).
… needs to win.
Business-wise, Sequoia has no problem with taking risks.
In fact, Doug Leone once said:
“Taking risks is the only way to keep ongoing.”
Combined with that, he emphasizes being humble.
In fact, Doug Leone once said:
“Taking risks is the only way to keep ongoing.”
Combined with that, he emphasizes being humble.
Sequoia doesn’t take risks because they think they know better, but because they know it’s necessary.
“We are always one or two investments away from becoming a Second Tier firm, and that’s very clear in our mind.”
Without change and new ideas, it’s over faster than you think.
“We are always one or two investments away from becoming a Second Tier firm, and that’s very clear in our mind.”
Without change and new ideas, it’s over faster than you think.
The way Michael and Doug handle pitches is another crucial part of Sequoias' success.
They’re known to be very tough to pitch to.
Only 1-2% of pitches are successful.
They’re known to be very tough to pitch to.
Only 1-2% of pitches are successful.
Here are the main mistakes that young founders make in their pitches:
- Not describing how they got the inside (How do they know this is the perfect solution)
- Not being able to explain why their product is different from competitors
- Caring more about money than the product
- Not describing how they got the inside (How do they know this is the perfect solution)
- Not being able to explain why their product is different from competitors
- Caring more about money than the product
Conclusion:
Sequoia's success is based on its culture and the clear vision Doug and Michael had for the company.
They know exactly what people they want to hire and what startups and founders they want to support.
And they’re not afraid to swing for the fences.
Sequoia's success is based on its culture and the clear vision Doug and Michael had for the company.
They know exactly what people they want to hire and what startups and founders they want to support.
And they’re not afraid to swing for the fences.
I hope you’ve enjoyed this little success story.
If that’s the case, feel free to share this Thread (Retweet), Like, and comment on it.
For more content about investing, follow me @MnkeDaniel. 👈🏼
If that’s the case, feel free to share this Thread (Retweet), Like, and comment on it.
For more content about investing, follow me @MnkeDaniel. 👈🏼
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