In the crowded field of US venture capital, where arguably too much money is chasing the available quality investments and some firms bemoaning the industry's prospects , Sequoia Capital is on something of a run. Having reaped a reported $495m - or 43-fold return - on its investment in YouTube.
VC Ratings points to a new feature on the company's website - a list of 10 characteristics that Sequoia, which backed both Yahoo! and Google, looks for in companies and advice on submitting a business plan. It is striking that - "Team DNA" aside - the list is light on high-level, empty rhetoric and full of common sense. Under "Clarity of Purpose" - Sequoia suggests summarizing a company's business on the back of a business card. No need for reams of management speak here - for a business plan a single declarative sentence is all it should take. Under "Painkillers" - "pick the one thing that is of burning importance to the customer then delight them with a compelling solution."
Whatever the product is, who could resist? And under the mysterious heading of "Inferno" - it concludes, "start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower." How refreshing.
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