Sequoia secured an investment in Citadel Securities after 2.5 years of persistence. The key was framing their value around building technology businesses—an area where Citadel's Ken Griffin wanted help—rather than trying to compete on market-making knowledge.
The firm distinguishes between speed (magnitude) and velocity (magnitude plus direction). Founders are encouraged to focus on velocity, ensuring the entire team is moving quickly *in the right direction*. This prevents wasted effort where mere motion is mistaken for progress, a common trap in turbulent markets.
Forcing an 'AI culture' is short-sighted. The real goal is to foster a culture that prioritizes continuous growth and learning. This creates an organization that can adapt to any major technological shift, whether the internet, mobile, cloud, or AI. The specific technology is temporary; the capacity to learn is permanent.
While network effects drive consolidation in tech, a powerful counter-force prevents monopolies. Large enterprise customers intentionally support multiple major players (e.g., AWS, GCP, Azure) to avoid vendor lock-in and maintain negotiating power, naturally creating a market with two to three leaders.
A strong culture isn't defined by perks during good times; it's proven by how the team operates during crises. Companies that face significant struggles early in their journey often develop a more resilient and authentic culture, which becomes a crucial asset for long-term survival and success.
The rapid pace of AI innovation means today's cutting-edge research is irrelevant in three months. This creates a core challenge for founders: establishing a stable, long-term company vision when the underlying technology is in constant, rapid flux. The solution is to anchor on the macro trend, not the specific implementation.
During COVID, when Airbnb's revenue dropped 80%, CEO Brian Chesky led with a three-part framework. 1) Head: Stay focused on the long-term purpose. 2) Heart: Choose hope over despair by focusing on bright spots. 3) Hands: Relentlessly execute with a constant cadence of communication and decision-making.