To ensure the "triumph of ideas, not the triumph of seniority," Sequoia uses anonymized inputs for strategic planning and initial investment votes. This forces the team to debate the merits of an idea without being influenced by who proposed it, leveling the playing field.
The ideal investor profile is a "killer teddy bear." This archetype is "hyper-competitive" and obsessed with winning but also has a "heart of gold," demonstrating deep care for their teammates and founders. It's a blend of relentless drive and high integrity.
Botha compares great companies to empires, defined by two traits: "flexible borders," meaning they constantly push into new and unanticipated categories, and "relentless ambition." This continuous expansion and drive to dominate is fueled by the power that comes from generating profits.
Roelof Botha claims "cost is the secret of Silicon Valley." While product innovation gets the attention, relentless cost reduction is the bigger driver of success. It democratizes technology and provides a true competitive advantage, unlike simply lowering prices.
Roelof Botha describes the pressure of leading Sequoia, a firm whose portfolio comprises 30% of NASDAQ's value. This legacy creates a "burden" and an expectation to maintain top performance, demanding continuous innovation to avoid becoming "yesterday's winners."
Sequoia makes consensus investment decisions, viewing each deal as "our investment." This is only possible through a culture of high trust and "front stabbing"—brutally honest, direct debate about a deal's merits. This prevents passive aggression and ensures collective ownership.
To combat complacency, Sequoia's office has a wall where every investor has personally written, "We are only as good as our next investment." This daily, physical reminder reinforces the firm's cultural paranoia and focus, ensuring they never rest on past successes.
Botha argues venture capital isn't a scalable asset class. Despite massive capital inflows (~$250B/year), the number of significant ($1B+) exits hasn't increased from ~20 per year. The math for industry-wide returns doesn't work, making it a "return-free risk" for many LPs.