Stratechery Sequoia Productive Capital
Oct 27, 2021
Dive into the fascinating synergy between tech and society as continuous computing reshapes our world. Explore the rise of SaaS and the potential of the metaverse as the next frontier. Discover how consumer platforms are revolutionizing services by leveraging low costs and innovative monetization strategies amidst the COVID era. Unpack the relationship between government and technology, particularly in China and the U.S., and learn about the evolution of venture capital with new funding models like perpetual funds.
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Financial vs. Production Capital
- Financial capital is mobile and seeks quick returns, flowing to emerging technologies.
- Production capital is rooted in established businesses, reinvesting profits for long-term growth.
Venture Capital Evolution
- Venture capital, initially crucial for funding startups with high upfront costs, is becoming commoditized due to cloud services.
- Venture capitalists now focus on brand recognition and added services to stay competitive.
Sequoia's Transformation
- Sequoia Capital is shifting from a traditional 10-year fund cycle to a permanent structure, the Sequoia Fund.
- This change aims to support long-term company growth and align with founders' ambitions.
