Sequoia Capital and the 7 Deadly Sins
Article originally posted here by Eric J. Swanson
by Eric Swanson
Eric Swanson explores the unofficial investment thesis of Sequoia around the Seven Deadly Sins. He describes how building great products require creators to understand the deepest truths about people. Hear his thoughts below...
A few weeks ago my son, Jeff, mentioned in passing that Sequoia Capital didn’t invest in a startup company unless the founders could identify which of the 7 deadly sins the product or service was appealing to. Their logic is simple: “We don’t want to invest in something people should want to do. We want to invest in things that people can’t stop doing.” We would do well to pay attention to Sequoia’s theology. As one of the top venture capital firms in the country, the companies they helped to launch[i] are collectively now worth over 20 percent of the NASDAQ stock exchange. Because they appeal to the 7 deadly sins doesn’t make them evil. Far from it. Since 2000, Sequoia has returned over $10 billion in stock and cash to non-profits and schools. They are not evil. They just understand human nature.
Read his whole article here on his blog!
What we can learn from Sequoia Capital and the 7 Deadly Sins
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