Sequoia Capital is the most respected technology
venture capital firm in the world.
They’ve
backed companies that collectively are worth over 20% of the total value of the
NASDAQ stock exchange: Apple, Oracle, Google, Electronic Arts, Linear
Technology, PayPal, Aruba, LinkedIn, Youtube, Zappos, Airbnb, etc.
They
invest in people they call “The creative spirits. The underdogs. The resolute.
The determined. The indefatigable. The defiant. The outsiders. The independent
thinkers. The fighters. The true believers.”
On
their website, they share for free numerous lessons learned over the years
while working with world class entrepreneurs and companies.
“We
shield ourselves from distractions. We value teamwork over showmanship.
Listening beats talking. Teams, and gradual improvement of teams, are the
secret to long-term success”. Those are said to be Sequoia’s core believes and
culture code.
Below
are Sequoia’s Top 10 recommendations for Startups.
1.
Clarity of Purpose
Summarize
the company’s business on the back of a business card.
2.
Large Markets
Address
existing markets poised for rapid growth or change. A market on the path to a
$1B potential allows for error and time for real margins to develop.
3.
Rich Customers
Target
customers who will move fast and pay a premium for a unique offering.
4.
Focus
Customers
will only buy a simple product with a singular value proposition.
5.
Pain Killers
Pick
the one thing that is of burning importance to the customer then delight them
with a compelling solution.
6.
Think Differently
Constantly
challenge conventional wisdom. Take the contrarian route. Create novel
solutions. Outwit the competition.
7.
Team DNA
A
company’s DNA is set in the first 90 days. All team members are the smartest or
most clever in their domain. “A” level founders attract an “A” level team.
8.
Agility
Stealth
and speed will usually help beat-out large companies.
9.
Frugality
Focus
spending on what’s critical. Spend only on the priorities and maximize
profitability.
10.
Inferno
Start
with only a little money. It forces discipline and focus. A huge market with
customers yearning for a product developed by great engineers requires very little
firepower.