The "Change the World" Gospel…

• Is it a better balance sheet projected in Year3?
• Is it a backlogged pipeline for 9-month fulfillment?
• Is it complexity to rival the “Microsofts” of the planet?

IT IS NONE OF THESE!

Here are the insights of one of the world’s most preeminent “success-spotters”…

—–

SEQUOIA’s Elements of Sustainable Companies -Start-ups with these characteristics often foretells the success of a business and the likelihood of it becoming a sustainable, enduring company.

We like to partner with companies that have:

• Clarity of Purpose — Summarize the company’s business on the back of a business card.
• Large Markets — Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop.
• Rich Customers — Target customers who will move fast and pay a premium for a unique offering.
• Focus — Customers will only buy a simple product with a singular value proposition.
• Pain Killers — Pick the one thing that is of burning importance to the customer then delight them with a compelling solution.
• Think Differently — Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition.
• Team DNA — A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. “A” level founders attract an “A” level team.
• Agility — Stealth and speed will usually help beat-out large companies.
• Frugality — Focus spending on what’s critical. Spend only on the priorities and maximize profitability.
• Inferno — 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.

LIVE IT!