Sequoia Capital partner Andrew Reed discusses hiring and career paths into venture capital on TBPN.
Disclosure
Sequoia Acts as Cutthroat 'Front Stabbers' for Maximum Round Allocation
“Sequoia, you know, we are as cutthroat as it gets, right? Like we are front stabbers, you know, we'll, we'll, like, we don't hide that in general we want to do usually as much of a round as we possibly can.”
Insight
Fund Returns Are Inversely Proportional to Team and Fund Size
“Doug has this presentation, he calls it the laws of physics, where one of the laws of physics is that fund returns are inversely proportional to team size, and also fund returns inversely proportional to fund size.”
Assertion Contradicted
Reed: Sequoia Capital Global Equities is largest TMT hedge fund
“Sequoia Capital Global Equities, which is, I think at this point, the largest TMT long short hedge fund in the world.”
Insight
Formulaic Playbooks Create the Worst Tech Board Members
“A paint by numbers approach to anything in technology and anything in investing is bad. And I think the worst board members tend to try to be the people who come in and take the reins and run their play, run that company through their playbook because playbook…”
Opinion
Reed: Silicon Valley is ethical; bad behavior comes mostly from outsiders
“By and large, people are, like, good and ethical in the Valley. Like, it's a pay it forward place. It's a repeat game. I think there's a reason why a lot of the, you know, bad behavior comes from people who aren't from Silicon Valley.”
Insight
Generative AI Creates Unprecedented Revenue Ramps Through Immediate Distribution
“Because of that fact, like, you know, everybody's on the internet,
All the time.
And most of these technologies are available at the get go to everybody.
you can see revenue ramps like nothing we've ever seen before, right?
because it's transformative techno…”