Humble Beginnings

V I TA L S
I G N S A Little Personal History © 2011 Sequoia Capital 2

 FOUNDERS  IDEA 
TIMING THINGS © Play Bigger Advisors

NOW © 2011 Sequoia Capital
4

THEN © 2011 Sequoia Capital
5

NOW L AR R Y
P AG E © 2011 Sequoia Capital 6

THEN 1998 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

NOW J O H N
C H AM B E R S © 2011 Sequoia Capital 8

THEN 1987 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

NOW J E F F
W E I N E R © 2011 Sequoia Capital 10

THEN 2003 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

NOW O M AR H
AM O U I © 2011 Sequoia Capital 12

THEN 2006 O M AR
H AM O U I 2006 2010 Series A Acquired $3.3M $750M © 2011 Sequoia Capital 13

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

THE FOUNDERS CODETM Misfits Failures
Iterate Relentless Insight Focused Rebels Underdogs Unconventional Long-term Agility © 2011 Sequoia Capital 15

THEY WERE ONCE IN YOUR
SHOES © 2011 Sequoia Capital 16

Idea

UNIQUE & COMPELLING © 2011
Sequoia Capital 18

C R E AT I
V E TENSIONS Obvious Unique or novel Lots of competitors Handful of niche players Easy to build “Turing” award 50% improvement 10X better Too Early First Mover © 2011 Sequoia Capital

Timing

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 1999 MICROCHIP 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

INTERNET/MOBILE START-UP COSTS DROPPED 90%
marketplace $ STARTUP COSTS App Store 2000 2011 © 2011 Sequoia Capital 22

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

POST-PC RAMP TO 10 BILLION
© 2011 Sequoia Capital 24

THE WEB GRAVITATED TOWARDS FREE
+ AD SUPPORTED Payment Ongoing Advertising Training & Premium In App Transaction None Lead-gen Support Subscription Content Based Paid Payment Upfront SaaS Web Contract 2000s Free © 2011 Sequoia Capital 25

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 Paid Payment Upfront Contract Free © 2011 Sequoia Capital 26

…Great Causes

NOT THE REAL STORY 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…. © 2011 Sequoia Capital

THE REAL STORY MacArthur Foundation
International Justice © 2011 Sequoia Capital

THE REAL STORY Rockefeller Foundation
Community Safety and Survival © 2011 Sequoia Capital

THE REAL STORY Sloan Kettering
Cancer Research and Treatment © 2011 Sequoia Capital

THE REAL STORY Moore Foundation
Ecosystem Conservation © 2011 Sequoia Capital

THE REAL STORY Wellcome Trust
Biomedical Research © 2011 Sequoia Capital

THE REAL STORY MIT Student
Scholarships © 2011 Sequoia Capital

Alfred I Dupont Trust MIT
Amherst College Northwestern University Barr Foundation Norwich University Boston College Princeton University Boston University Rensselaer Bowdoin College Rw Johnson Foundation Brown University Rockefeller Foundation Bush Foundation Smithsonian Institution Claremont McKenna Stanford University Colby College The Ford Foundation GREAT CAUSES Columbia University University Of Chicago Cornell University University Of Minnesota Dartmouth College University Of Notre Dame Duke University University Of Rochester Georgia Tech Foundation USC Harvard University Vanderbilt University Hewlett Foundation Washington University James Irvine Foundation Wellcome Trust Johns Hopkins University Wellesley College Macarthur Foundation Williams College Moore Foundation © 2011 Sequoia Capital 35

Q&A
goetz@sequoiacap.com

THEY WERE ONCE IN YOUR
SHOES © 2011 Sequoia Capital 37

JOIN US © 2011 Sequoia
Capital 38

Thank You
Jim Goetz (goetz@sequoiacap.com)