Sequoia Capital: Jim Goetz at Y Combinator's Startup School At Stanford

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Jim discusses founders, ideas and timing from Sequoia Capital's perspective

Sequoia Capital: Jim Goetz at Y Combinator's Startup School At Stanford

  1. Humble Beginnings
  2. V I TA L S I G N S A Little Personal History © 2011 Sequoia Capital 2
  3.  FOUNDERS  IDEA  TIMINGTHINGS © Play Bigger Advisors
  4. NOW© 2011 Sequoia Capital 4
  5. THEN © 2011 Sequoia Capital 5
  6. NOWL AR R YP AG E © 2011 Sequoia Capital 6
  7. THEN1998 L AR R Y P AG E S E R G E Y B R I N 1999 2004 TODAY Series A IPO Market Cap $7.5M $27B $194B © 2011 Sequoia Capital 7
  8. NOWJ O H NC H AM B E R S © 2011 Sequoia Capital 8
  9. THEN1987 S AN D Y L E R N E R L E N B O S AC K 1987 1990 TODAY Series A IPO Market Cap $1.9M $224M $95B © 2011 Sequoia Capital 9
  10. NOWJ E F FW E I N E R © 2011 Sequoia Capital 10
  11. THEN2003 R E I D H O F F M AN 2003 2011 TODAY Series A IPO Market Cap $4M $4B $9B © 2011 Sequoia Capital 11
  12. NOWO M ARH AM O U I © 2011 Sequoia Capital 12
  13. THEN2006 O M AR H AM O U I 2006 2010 Series A Acquired $3.3M $750M © 2011 Sequoia Capital 13
  14. PROPS TO PAUL, JESSICA & TEAM P AU L G R AH A M J E S S I C A L I V I N G S T O N © 2011 Sequoia Capital 14
  15. THEFOUNDERSCODETM Misfits Failures Iterate Relentless Insight Focused Rebels Underdogs Unconventional Long-term Agility © 2011 Sequoia Capital 15
  16. THEY WERE ONCE IN YOUR SHOES © 2011 Sequoia Capital 16
  17. Idea
  18. UNIQUE & COMPELLING © 2011 Sequoia Capital 18
  19. C R E AT I V ETENSIONS Obvious Unique or novelLots of competitors Handful of niche players Easy to build “Turing” award 50% improvement 10X better Too Early First Mover © 2011 Sequoia Capital
  20. Timing
  21. S&P DECLINE 1973 – 74 43% 1980 – 82 17% 1987 30% 1973 1975 1977 1979 1981 1983 1985 1987 ATARI TANDEM APPLE AMCC LINEAR TECH ORACLE CISCO LSI LOGIC SYMANTEC 3COM EA UPS AND DOWNS 1990 15% 1998 15% 2000-02 44% 1989 1991 1993 1995 1997 1999MICROCHIP ARBOR FLEXTRONCIS YAHOO! REDBACK PAYPAL GOOGLE DOCUMENTUM NVIDIA NETAPP NETSCREEN RACKSPACE INS 2007 – 08 16% 2001 2003 2005 2007 2009 2011 GREENDOT ARUBA SOURCEFIRE YOUTUBE ADMOB DROPBOX UNITY SQUARE ISILON ZAPPOS PALO ALTO FIREYE JIVE POCKETGEMS TUMBLR LINKED-IN KAYAK BUMP MONGO AIRBNB © 2011 Sequoia Capital 21
  22. INTERNET/MOBILE START-UP COSTS DROPPED 90% marketplace$ STARTUP COSTS App Store 2000 2011 © 2011 Sequoia Capital 22
  23. MOBILE OUTPACES PC, INTERNET RAMP 1980 1990 2000 2010 PCs~7 years from 10 to 100M 1976-78 1987 1994 2005 Apple, Microsoft 10M 100M 800M founded users users users Internet ~5 years from 10 to 100M 1990 1993 1996 1998 2005 HTTP, web 10M AOL flat- 100M 1B browser users rate users users invented pricing Mobile Internet <4 years from 10 2002 2005 2007 to 100M First RIM 10M iPhone Blackberry users launched © 2011 Sequoia Capital 23
  24. POST-PC RAMP TO 10 BILLION © 2011 Sequoia Capital 24
  25. THE WEB GRAVITATED TOWARDS FREE + AD SUPPORTED Payment Ongoing Advertising Training & Premium In App Transaction None Lead-gen Support Subscription Content Based PaidPayment Upfront SaaS Web Contract 2000s Free © 2011 Sequoia Capital 25
  26. NEW AND DIVERSE MODELS ARE BEING EXPERIMENTED WITH IN THE MOBILE ECONOMY TODAY Payment Ongoing Advertising Training & Premium In App Transaction None Lead-gen Support Subscription Content Based PaidPayment Upfront Contract Free © 2011 Sequoia Capital 26
  27. …Great Causes
  28. NOT THE REAL STORYTop VC Firms Benefit From Wave of IPOsSilicon Valleys technology boom is giving a lift to the venture-capitalindustry. But many of the gains are being disproportionately reaped bybrand-name venture firms, which are benefiting from a wave of Internet IPOsand the soaring valuations of closely held companies…. © 2011 Sequoia Capital
  29. THE REAL STORYMacArthur FoundationInternational Justice © 2011 Sequoia Capital
  30. THE REAL STORYRockefeller FoundationCommunity Safety and Survival © 2011 Sequoia Capital
  31. THE REAL STORYSloan KetteringCancer Research and Treatment © 2011 Sequoia Capital
  32. THE REAL STORYMoore FoundationEcosystem Conservation © 2011 Sequoia Capital
  33. THE REAL STORYWellcome TrustBiomedical Research © 2011 Sequoia Capital
  34. THE REAL STORYMITStudent Scholarships © 2011 Sequoia Capital
  35. Alfred I Dupont Trust MITAmherst College Northwestern UniversityBarr Foundation Norwich UniversityBoston College Princeton UniversityBoston University RensselaerBowdoin College Rw Johnson FoundationBrown University Rockefeller FoundationBush Foundation Smithsonian InstitutionClaremont McKenna Stanford UniversityColby College The Ford Foundation GREAT CAUSESColumbia University University Of ChicagoCornell University University Of MinnesotaDartmouth College University Of Notre DameDuke University University Of RochesterGeorgia Tech Foundation USCHarvard University Vanderbilt UniversityHewlett Foundation Washington UniversityJames Irvine Foundation Wellcome TrustJohns Hopkins University Wellesley CollegeMacarthur Foundation Williams CollegeMoore Foundation © 2011 Sequoia Capital 35
  36. Q&Agoetz@sequoiacap.com
  37. THEY WERE ONCE IN YOUR SHOES © 2011 Sequoia Capital 37
  38. JOIN US © 2011 Sequoia Capital 38
  39. Thank YouJim Goetz (goetz@sequoiacap.com)

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