SEQUOIA CAPITAL CONFIDENTIAL 1

SEQUOIA CAPITAL CONFIDENTIAL

Haas Alternative Energy Speaker SeriesNovember 16, 2010

SEQUOIA CAPITAL CONFIDENTIAL

Then

1972

West of the Rockies

Venture Stage

Information Technology

SEQUOIA CAPITAL CONFIDENTIAL

Now

40 years of constant change

China, India, Israel, U.S.

Seed, Venture, Growth

27 Funds

800+ Companies

150+ IPOs

150+ M&As

SEQUOIA CAPITAL CONFIDENTIAL

Sequoia Capital 2010

TEL AVIV

5 INVESTORS

MENLO PARK

20 INVESTORS

BEIJINGSHANGHAI

HONG KONG

15 INVESTORS

DELHIMUMBAI

BANGALORE

14 INVESTORS

SEQUOIA CAPITAL CONFIDENTIAL

Energy/Cleantech Alternative, Conventional, Efficiency, Storage, Monitoring + Testing

Financial Services Banking, Brokerage, Information, Payments

Healthcare Services Contract Research, Diagnostics, Drugs, Labs, Patient Care

Internet Communications, e-Commerce, Enterprise, Gaming, Media, Search

Mobile Communications, Dev Tools, Enterprise, Gaming, Media Payments

Technology Carrier/Enterprise Infrastructure, Security, Storage, Cloud/SaaS, Storage

Ecosystem

SEQUOIA CAPITAL CONFIDENTIAL

Yesterday

Semis Systems Software Services

SEQUOIA CAPITAL CONFIDENTIAL

Elements of a Sustainable Company

✔ Clarity of purpose

✔ Spectacular market

✔ Alleviate customer pain

✔ Team DNA

✔ Incredible product focus

✔ Real operating margins

✔ Frugality

✔ Inferno with a single match

SEQUOIA CAPITAL CONFIDENTIAL

Cleantech / Energy

SEQUOIA CAPITAL CONFIDENTIAL

Exploration Generation Transmission Consumption Reduction

Gre

ente

chB

row

nte

ch

C12Havells

ISCA

Accelergy

Isilon

ThinSilicon

Clean cell

Changelight

Ind-Barath

CoastalProjects

A123

Tula

Achates

Luxim

Synapsense

Tribi

Colors of Cleantech

Coastal Projects

Jinye

SunRun

Prudent

Lubao

Sino

Shenghui

eMeter

Acoustic Eye

SEQUOIA CAPITAL CONFIDENTIAL

The Magic Metric: Gross Margin

Sustainable Companies = High Gross Margins (usually > 60%)

High Gross Margins imply:

Real customer pain

Differentiated product / strong IP

Lower cash requirements

Higher growth potential

Higher profitability potential