Straight forward VC advice from Sequoia

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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