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Jim discusses founders, ideas and timing from Sequoia Capital's perspective
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Humble Beginnings
© 2011 Sequoia Capital
V I T A L S I G N S A Little Personal History
2
THINGS © Play Bigger Advisors
FOUNDERS
IDEA
TIMING
© 2011 Sequoia Capital
N O W
4
© 2011 Sequoia Capital
T H E N
5
© 2011 Sequoia Capital
N O W
L A R R Y
P A G E
6
© 2011 Sequoia Capital
T H E N
1 9 9 8
L A R R Y P A G E
S E R G E Y B R I N
7
1999 2004 TODAY
Series A IPO Market Cap
$7.5M $27B $194B
© 2011 Sequoia Capital
N O W
J O H N
C H A M B E R S
8
© 2011 Sequoia Capital
T H E N
1 9 8 7
9
1987 1990 TODAY
Series A IPO Market Cap
$1.9M $224M $95B
S A N D Y L E R N E R
L E N B O S A C K
© 2011 Sequoia Capital
N O W
J E F F
W E I N E R
10
© 2011 Sequoia Capital
T H E N
2 0 0 3
R E I D H O F F M A N
11
2003 2011 TODAY
Series A IPO Market Cap
$4M $4B $9B
© 2011 Sequoia Capital
N O W
O M A R
H A M O U I
12
© 2011 Sequoia Capital
T H E N
2 0 0 6
O M A R H A M O U I
13
2006 2010
Series A Acquired
$3.3M $750M
© 2011 Sequoia Capital 14
PROPS TO PAUL, JESSICA & TEAM
P A U L
G R A H A M
J E S S I C A
L I V I N G S T O N
© 2011 Sequoia Capital
T H E
F O U N D E R S
C O D E TM
Iterate Failures F
ocu
sed
In
sig
ht
Long-term
Underdogs Unconventional
Relentless
Agility
Rebels
Misfits
15
THEY WERE ONCE IN YOUR SHOES
16 © 2011 Sequoia Capital
Idea
© 2011 Sequoia Capital
U N I Q U E & C O M P E L L I N G
18
© 2011 Sequoia Capital
Obvious
Lots of competitors
Easy to build
50% improvement
Too Early
Unique or novel
Handful of niche players
“Turing” award
10X better
First Mover
C R E A T I V E
T E N S I O N S
Timing
© 2011 Sequoia Capital
1973 1975 1977 1979 1981 1983 1985 1987
ATARI TANDEM APPLE AMCC LINEAR TECH
LSI LOGIC
3COM
ORACLE
SYMANTEC
EA
CISCO
S&P DECLINE 1973 – 74 43% 1980 – 82 17% 1987 30%
FLEXTRONCIS
NVIDIA
INS
2000-02 44% 1998 15%
1989 1991 1993 1995 1997 1999
1990 15%
RACKSPACE
YAHOO!
NETAPP
REDBACK PAYPAL
NETSCREEN MICROCHIP ARBOR
DOCUMENTUM
ARUBA
ISILON
LINKED-IN
YOUTUBE
PALO ALTO
KAYAK
UNITY
POCKETGEMS
BUMP
AIRBNB
SQUARE
TUMBLR
MONGO
2001 2003 2005 2007 2009 2011
GREENDOT SOURCEFIRE
ZAPPOS
ADMOB
FIREYE
DROPBOX
JIVE
2007 – 08 16%
UPS AND DOWNS
21
© 2011 Sequoia Capital
marketplace
App Store
2000 2011
$ S
TA
RT
UP
CO
ST
S
INTERNET/MOBILE START-UP COSTS
DROPPED 90%
22
© 2011 Sequoia Capital
MOBILE OUTPACES PC, INTERNET RAMP
23
1994
100M
users
1998
100M
users
2007
iPhone
1996
AOL flat-
rate
pricing
PCs
~7 years
from 10
to 100M
Internet
~5 years
from 10
to 100M
Mobile
Internet
<4 years
from 10
to 100M
2005
1B
users
2005
800M
users
1980 1990 2000 2010
2005
10M
users
1987
10M
users
1993
10M
users
1990
HTTP, web
browser
invented
1976-78
Apple, Microsoft
founded
2002
First RIM
Blackberry
launched
© 2011 Sequoia Capital
POST-PC RAMP TO 10 BILLION
24
© 2011 Sequoia Capital
THE WEB GRAVITATED TOWARDS
FREE + AD SUPPORTED
Paym
en
t U
pfr
on
t
Payment Ongoing
Free
Contract
Paid
None
Advertising Lead-gen
Training & Support
Premium Subscription
In App Content
Transaction Based
SaaS
Web
2000s
25
© 2011 Sequoia Capital
NEW AND DIVERSE MODELS ARE BEING EXPERIMENTED
WITH IN THE MOBILE ECONOMY TODAY
Paym
en
t U
pfr
on
t
Payment Ongoing
Free
Contract
Paid
None
Advertising Lead-gen
Training & Support
Premium Subscription
In App Content
Transaction Based
26
…Great Causes
© 2011 Sequoia Capital
Top VC Firms Benefit From Wave of IPOs
Silicon Valley's technology boom is giving a lift to the venture-capital
industry. But many of the gains are being disproportionately reaped by
brand-name venture firms, which are benefiting from a wave of Internet IPOs
and the soaring valuations of closely held companies….
N O T T H E R E A L S T O R Y
T H E R E A L S T O R Y
MacArthur Foundation
International Justice
© 2011 Sequoia Capital
T H E R E A L S T O R Y
Rockefeller Foundation
Community Safety and Survival
© 2011 Sequoia Capital
Sloan Kettering
Cancer Research and Treatment
T H E R E A L S T O R Y
© 2011 Sequoia Capital
T H E R E A L S T O R Y
Moore Foundation
Ecosystem Conservation
© 2011 Sequoia Capital
T H E R E A L S T O R Y
Wellcome Trust
Biomedical Research
© 2011 Sequoia Capital
T H E R E A L S T O R Y
MIT
Student Scholarships
© 2011 Sequoia Capital
© 2011 Sequoia Capital
Alfred I Dupont Trust
Amherst College
Barr Foundation
Boston College
Boston University
Bowdoin College
Brown University
Bush Foundation
Claremont McKenna
Colby College
Columbia University
Cornell University
Dartmouth College
Duke University
Georgia Tech Foundation
Harvard University
Hewlett Foundation
James Irvine Foundation
Johns Hopkins University
Macarthur Foundation
Moore Foundation
MIT
Northwestern University
Norwich University
Princeton University
Rensselaer
Rw Johnson Foundation
Rockefeller Foundation
Smithsonian Institution
Stanford University
The Ford Foundation
University Of Chicago
University Of Minnesota
University Of Notre Dame
University Of Rochester
USC
Vanderbilt University
Washington University
Wellcome Trust
Wellesley College
Williams College
G R E A T C A U S E S
35
Q & A
goetz@sequoiacap.com
THEY WERE ONCE IN YOUR SHOES
37 © 2011 Sequoia Capital
© 2011 Sequoia Capital
J O I N U S
38
Jim Goetz (goetz@sequoiacap.com)
Thank You
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