"Turpentine VC" | Venture Capital and Investing

E12: An Inside Look Into Sequoia's Strategy & Operations, with Alfred Lin

Oct 31, 2023

Alfred Lin, Partner at Sequoia Capital for over 13 years, talks about Sequoia's strategy and operations. They discuss why they don't track A-U-M, the launch of the Sequoia Capital Fund, and the decision-making behind creating Sequoia Arc. They also explore the importance of firm building, the business models of Y Combinator and Sequoia Capital, and the future of venture capital. Additionally, they touch on dedication, teamwork, learning in founder and investor success, incubation in venture firms, and decision-making under uncertainty.

01:02:52

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Alfred Lin

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Quick takeaways

Sequoia Capital prioritizes being supportive and demanding with founders, while also focusing on long-term thinking and successful generational transitions.

Sequoia's structure includes programs like ARK and the Sequoia Capital Fund to engage with companies at early stages and provide ongoing support for their growth.

Sequoia's fund structure has evolved, with a focus on fund size and specific funds invested in, rather than tracking assets under management (AUM) directly.

Deep dives

Sequoia's Cultural DNA

Sequoia Capital's culture is rooted in being unconventional, having a long-term focus, and holding ideas in tension. They prioritize being supportive and demanding with founders, and have experienced successful generational transitions. Sequoia's structure has remained largely the same over the years, with a focus on early and growth stage investing, company building, and a strong commitment to staying with founders from idea to IPO and beyond.

Sequoia culture and brand

03:36

Decision-making Under Uncertainty: Importance, Application, and Balancing

01:25

Sequoia offsite where wrote pre-parade and pre-mortem

01:24

How Sequoia Measures themselves and portfolio

02:27

Introduction

3min

Firm Building and Cultivating a Skillset

8min

Exploring the Business Models of Y Combinator and Sequoia Capital

3min

Scaling Arc and the Future of Venture Capital

15min

Dedication, Teamwork, and Learning in Founder and Investor Success

4min

Incubation in Venture Firms

22min

Continuous Self-Creation and Decision-Making Under Uncertainty

5min

Erik is joined by Alfred Lin, partner at Sequoia Capital for over 13 years, and investor in Airbnb, Doordash, Houzz, and more legendary Silicon Valley companies. We dive into the unique ways which Sequoia operates as a firm in this episode: why they don't actually track A-U-M, why they launched the Sequoia Capital Fund, the decision-making behind creating Sequoia Arc, and more. If you’re looking to improve your sourcing, tracking, and due diligence, check out: https://synaptic.com/turpentine

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RECOMMENDED PODCAST:

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X / TWITTER:

@Alfred_Lin (Alfred)

@eriktorenberg (Erik)

@sequoia (Sequoia)

@TurpentineVC

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TIMESTAMPS:

(00:00) Episode preview

(01:10) How Sequoia does generational transitions

(05:31) Sequoia's firm structure and evolution

(11:01) Sponsor: Synaptic

(11:52) On Sequoia Arc and competing against YC

(15:01) On metrics and leading indicators

(18:19) How to add the most value to founders

(23:33) Alfred on the landscape of venture in 2030

(25:39) What makes a Sequoia partner great?

(28:40) Sponsor: Oracle Clound Infrastructure

(33:02) On incubations

(34:53) On macro

(38:56) Alfred's thoughts on AI

(43:33) Leadership and how to show up for founders

(49:42) Alfredisms: the time span of discretion and the roles of a founder

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This show is produced by Turpentine: a network of podcasts, newsletters, and more, covering technology, business, and culture — all from the perspective of industry insiders and experts. We’re launching new shows every week, and we’re looking for industry-leading sponsors — if you think that might be you and your company, email us at erik@turpentine.co.

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