23 Burst results for "Sequoia Capital"
30K Macs are infected with ‘Silver Sparrow’ virus and no one knows why
"sequoia capital" Discussed on Acquired
"Show notes or visit them at perkins kui dot com. Well i've i've one more sort of structural question here before we start to wind toward the end of our episode so a lot of people who are building firms or building enduring institutions of any type look to sequoia forty nine years high-performance at almost every if not every stage along the journey building from a small group of people into a globally distributed team that runs like a well oiled machine at least perception from the outside. And i'm curious. What are some of the practices that have contributed to allowing you to learn and get better and become that enduring institution instead of something that flames out at some point. And i'm thinking you know. Do you do mortems. How do you think about learning from your learning. From your successes. How does that all happen. This is going to sound trite. But the it had to do with don starting out and sent calling at sequoia capital instead of valentine capital. He had set the culture right at the beginning. And this is a people business. We hire partners that then. Interface with our founders. There's very little secret sauce in this business. And the simple fact of basically calling it sequoia capital because he wanted to build the tallest tree inside of venture capital makes a statement also makes the statement that that the firm is not his that he's around to start the firm and then he's gonna hand it over to mike and doug and it's their job to sort of keep sequoia going and at some point they're going to go and they're going to it off to the next generation the next generation after that and you're putting out that he he didn't put some high value on the management company because it had been so successful to sell to the next generation. He literally just said you now. Own the management company right and nobody owns a management company at sequoia the gp's sort of manage the management company and we don't view it as owning it. We view it as we inherited from the last generation. And it's our job to make sure that we pass it on to the next generation better hands. All of us come to sequoia being able to stand on the shoulder giants and we wanna make sure that this place is better off for the next generation and just coming off of vat is a huge base to be able to build upon in terms of like constant..
"sequoia capital" Discussed on Acquired
"And one and so like some of these things have to do with just being crafty and being smart about exactly how you go about winning and coming out on top. I'm curious to dive in on that a little bit. So they decided to do the very expensive ground war with women do and part of that financing came from you. How did you think about evaluating whether that was a good use of capital verses any other place that you could place that marginal dollar as sequoia. It's always easy to say. In retrospect that It was obvious and everybody talks about that. But it what's obvious at the time. Is that travel is a global network effects business and maybe not today during the pandemic. It's more localized. But we're going to get past the pandemic were all going to get vaccinated. Will go back to traveling. Traveling won't be the same as before but we all love visiting different parts of the world and what is true is Do you want to travel to different parts of the world and more than you do locally and if you win that if you win the supply you will most likely get all the demand and that was the reason why we had conviction on. Investing more in later rounds makes sense. I'm curious in that specific case with airbnb. Of course we've covered it so many times on this show episode. Many others that global network effect is so powerful. One of the reasons why airbnb has been able to build so much power in the hamilton. Helmer sense over the years. When did you guys realize that at sequoia was that part of the thesis going in like if this works if we can build up supply and demand globally like there is an opportunity for global network effect here or is that something that revealed itself over time as you were saying i think part of dreaming is that you can create one. It's not that we it's not the it got realize on the first on our seed investment at the seat investment they had listing service. Right they had t- thousand or so listings. they had a few transactions. It was definitely not a network affects business at that time. But you have to dream that if you get enough of the supply it should be a network effects business. That's part of having prepared mind. The concept of a marketplace has been around for while partnered by ebay on the internet. But it wasn't the only marketplace we've had other marketplaces and a stock exchanges on marketplace. And so having a prepare mind allows you to think about these conceptually into the future..
Robinhood, in Need of Cash, Raises $1 Billion From Its Investors
"Hood still needed more cash quickly to ensure that it didn't have to place further limits on customer trading we to people briefed on the situation. Who insisted on remaining anonymous because the negotiations were confidential robin hood which is privately held contacted several of its investors including the venture capital firms sequoia capital and ribbit capital. Who came together on thursday night to offer the emergency funding. Five people involved in the negotiations said and
"sequoia capital" Discussed on Technovation with Peter High (CIO, CTO, CDO, CXO Interviews)
"For few bet allows you to direct. Your data into vendor is best for the particular use you for not very interesting. A colleague of yours at sequoia bogomil noted and. I'm quoting here. Every company has become a software company in observer. Abilities how you keep that software on track despite all the tools available. Troubleshooting is incredibly hard and some complexity you've just described would certainly underscore that but i wanted to focus on the difficulty of this A little bit further. Why is it so difficult in your mind as these systems become so complex they introduce buyers of abstraction. Which makes it easier for people to do your job do their jobs. If you're developing on necessarily after worry about infrastructure you can focus on writing code. That solves the business problem but every time one of those layers of abstraction is introduced year. Might be separating yourself from the root cause of an issue and troubleshooting has become complex because rarely does one person actually see everything into yoga. You know you have a server that is running at aws you know you have a database. That's being hosted by a third party vendor You have an application you've built. That actually has twenty five different open source dependencies with there are so many different pieces from so many different parties that come together to deliver software applications today getting his ability across all those different pieces is incredibly tough and that's why the troubles Problem can be tricky. The the topic of data privacy is a is certainly a topic on the rise of both for personal reasons as all of us contemplate The degree to which we wish a or or would allow companies to use our data in ways. Perhaps we're that are not entirely knowledgeable of and naturally as off shoot of that companies need to be much more aware of it as well Because of the implications of that the growing regulatory aspects that they need to be aware of and so on talk a bit about your own perspectives on on data privacy related to this and the kind of tension perhaps even healthy tension between consumers evolving thought process around this enterprises need to be cognizant both of those as well as of the the regulations that might impact how they do business. I think this is one of the reasons to take a best of breed approach to observe taking the best of breed approach. Meaning you might have crippled for your pipeline. You might arrived a variety of companies to act as a storage That's on crested laver than having righted up these providing application specific functionality. On top taking that best agreed approach. Maximizes your ability to make sure that you don't have any false when it comes to data privacy using the more instrumentation you have around you observe data the more likely you are to not inadvertently run afoul of any sort of regulation and so i think. Observability is part of the solution to data privacy And not part of the problem at i. Think if you hear the word observability. It's easy to think. wait a minute. What observing is this a privacy thing but the truth matter is it's it's part of the solution it's far from excellent and i wonder if you could talk a little bit about So for people who may be listening who are less mature. There are lower on the rungs towards Degree of of appropriate to maturity related to the topic of observability. What are some of the steps you would recommend i especially want to underscore the point. You made earlier that it's all well and good and oftentimes people will quickly think about solutions. But there's a broader kind of cultural people process aspect to this as well. What are some of those early stages or steps that you would recommend organizations. That is as i say our early in earlier in this evolutionary journey that they might undertake. I think you're i think if you early in this journey you probably want to start with it. Platform that is user friendly and somewhat fully featured in terms of its functionality. And soon but logic is as good as it gets when it comes to the now You have a cloud native organization because it's the first quantitative machine data platform out there that can be used for variety of use cases so for somebody's into this hour recommend star logic the out of the box optionality figure out how it fits into your organization. Chances are you're going to have operational use cases related to keeping applications running. Chances are you're gonna security use cases related to making sure that nobody's getting nobody's getting breached and there's no in data loss once you have about singer organization. You may find yourself in a position where you kind of want to take it a step further and you may love him a logic but there might be particular corner cases for which you want to introduce some sort of best of breed tool and that's where you start thinking about something by cripple. Something like rebel in that case is perfect complement to sumo logic. That also helps you take advantage of some of the other tools in he can system so i kinda of finger out a platform that is right for you and step two You'd probably wanna start using something like to have a little bit more freedom and flexibility around your data who were the personas roles within organizations who are typically leading this from your perspective as chief information officers at somebody deeper within the technology or digital organization one of the tricky things about this image that has these products can be a little bit like a swiss army knife. You can use them in a lot of different ways you can use them on a different levels so you can do these sea level security executive. You could be the so. And you want to use this technology to make sure you're not getting reached or you could be an individual developer just on nature that the you just pushed into production is actually running as intended and so it kinda renews dicillo all the way up to the sea level and it spans operational groups that are putting applications and production to some of the security and other infrastructure support oriented groups so it's a fairly wide ranging thing. I will say that the if you if you want a singular landing point i would probably look toward whoever has been the champion for the transition towards something that looks and feels more like devops because those people tend to serve as a centralized tendon centralization function where there are already acting as the bridge between some of these different pieces on that makes them a natural a natural place to go for expertise or stop in and has the has the pandemic in the quarantine In the just sort of changes in the way in which organizations doing business has this impacted this in some meaningful way in your mind and a salary because bricks and mortar companies. No longer have the option of the way they used to migrated online faster than they would've historically or hybrid have emphasized their digital presence around physical presence. I think because the world has been shoved mind and in a dramatic way of last month's the entire ecosystem of tools around digital businesses has taken off and observe abilities Anybody who sell something online and your website goes down for a couple of minutes or a couple of hours. That's lost revenue and observability tools. Are what keeps your website up and running. And so there's taliban direct correlation between you're competency around observability and your ability to drive revenue. If you're.
Oracle joins race for TikTok, reportedly in talks to acquire U.S. operations
"Oracle has been working with US investors who already have a stake in bite dance to put together deal to acquire tic tacs operations in the US Canada Australia and New Zealand. Which? Oracle. Oracle if Microsoft as a home for Tiktok didn't make much sense. You than Oracle definitely doesn't right unless they're just interested in keeping it out of Microsoft's hands don't know quote detect company co founded by Larry Ellison had held preliminary talks with tiktok Chinese owner bite dance, and was seriously considering purchasing the APPS operations in the US Canada. Australia. New. Zealand the people said Oracle was working with a group of. US investors that already own steak and dance including General Atlantic and sequoia capital. The people added the entry of Oracle into the race provided by dance with a credible alternative to Microsoft's offers said, one person with knowledge of the matter twitter had also held early stage talks with TIKTOK. But there were serious concerns about the US Social Media Group's ability to finance the deal said people briefed about the matter and quote? But still? Oracle really.
"sequoia capital" Discussed on The New School with Christine Hong
"And also helpful to really. Early stage founders. 'cause sequoia prides itself of always being in what we call the pre seed and seed business. And then working with those super. Early Company is all the way through IPO and beyond so we measured it on the number of seed stage companies that wanted to talk to us even before they may be even needed funding. How did you achieve goal once making sure? The existing founders were supported. I mean it was actually two very different ways. One is in what I would call the spoke help. How could me or the investors helped them and their companies with individual problem solving or growth opportunities. So that could be helping them with. Launched helping them in a crisis situation helping them higher. That was first and that's obviously very specialized to each and company and then the other way was how am I eighteen? Much more scalable ways that had to do with connecting founders with founders and building community. There's a few as sequoias done that. One is through events so we have an event called base camp where we take all of our founders camping or it really gives founders and opportunity to reflect in connect with each other and certainly we bring in great speakers and deliver great content and then from there. We started what I would call founder boot camps. A program called aunt with stands for amplify mobilize and propel it's like a ten week intensive where our founders really young companies that seed and series as companies come together and they meet every Thursday for four hours in the evening going through critical business building concept and then they get to connect with each other at the end of the day. Most founders have the skills that need they just need the support of a great network to help them solve problems in the moment to those were a couple of ways that we built loyalty either very specific or building community interesting. Is that how you try to stand out from other brands? Those are two ways that we really do. Try to stand out. I think the other way is just. We have a very small dedicated team. That's all in we think of ourselves partner versus an investor and will stand by you through each stage of the journey and we also have expertise at each stage of the journey as it really does vary depending on where you're at for goal to. You're saying you want to make sure no companies that were awesome like didn't apply to quite. You're like one atop the companies. Do you actually have trouble with? I would say we have trouble in that. People may not want to come meet with us before they feel like. They're ready because they really in many cases. May WanNa work with US. But they feel like they want to be perfect and that in fact is the worst thing because we can actually be most helpful when companies are still rough around the edges. And I don't think it had anything to do with us. Sides the fact that a founder sees brands like airbnb or dropbox or Google. And they think Oh. I'm not done yet. But those companies. Were you know two or three people in our offices when they first started so. I think it's telling those stories that it's never too soon to start with sequoia and then also being helpful to them even prior to going into business with those companies that makes sense. I don't think I would even think of talking to sequoia unless I had at least a million users or something and that's detrimental to our business to because we don't want you to wait that long because we can probably help you get to those million users. So when's a good time? So what stage? I think. Obviously it depends. You don't have to have product market fit yet. You have to have a compelling market size.
Starbucks strikes partnership with venture capital firm Sequoia to make tech investments in China
"Starbucks has struck a partnership with venture capital firm sequoia capital China to co invest in technology businesses in China the latest push from Starbucks aims to boost the digital aspect of its business in one of its most important
"sequoia capital" Discussed on Bloomberg Radio New York
"Want to talk about sequoia capital which was one of the first venture capital firms to sound the alarm about just how dire the economic impact of the corona virus outbreak would be two weeks ago the Korea sentimental to its entrepreneurs calling the corona virus the blacks one of twenty twenty telling entrepreneurs to hunker hunker down conserve cash and start asking some critical questions about their business I want to bring in Alfred Lin now a partner at sequoia sequoia is of course an investor in Airbnb in zoom Alfred your an investor in uber personally you sent that memo two weeks ago and things have changed dramatically since then and even in the last twenty four hours are you even more worried now today than you were then we sent the memo because we wanted to signal to our founders that they should take it seriously and we want to sort of go back to first principles and the first thing first and foremost this is a health crisis so we want everyone to take care of themselves and their family and their employees and their community and second as a business leader do we have to take this seriously and we need to focus on survival for many of our founders that means focusing on their cash flow and understanding how much cash they have to get to the other site here more interviews like this one on Bloomberg television streaming live on Bloomberg dot com and on the Bloomberg mobile app or check your local cable listings markets headlines and breaking news twenty four hours a day at dot com the Bloomberg business this is a Bloomberg business slash and I'm here in Moscow the dollar is extending gains as investors seek havens while they question the effectiveness of a rapidly strengthening battery of economic and financial support measures by global policy makers stocks are mixed worldwide in volatile trading U. S. stock index futures they've been fluctuating we check the markets every fifteen minutes throughout the trading day on Bloomberg S. and P. futures are little changed now Dow futures up seventeen does that futures up sixty six the dax in Germany sept one and a half percent.
7 Unconventional Ways We Run Our Companies |
"I'm Eric Su and I'm Neil Patel and today we are going to talk about seven confessional ways. We've run our companies all right so I will start with way number one so we have a hybrid remote model so we like remote were remote friendly. I'll say it that way. So on the agency side. Because we can having to serendipity of people getting creative and talking in a room and there's just a lot of ideas that go back and forth and a lot of touch points on that we do a three to model meaning that were in the offices Monday through Wednesday and Thursday Friday. People work from home and they really liked that model because Thursday Friday ticket to just focus on the work and then by the time. Monday rolls around. They're excited to come back into work. And then when did her Wednesday crinkle meetings again and just go back home? So that's worked out really well for us over the years so this would be number two unconventional way that I run my companies is I was put a CEO in place. So I'm a big believer. No matter what I do. You always want someone leading the ship. Whose amazing operations growing recruiting and I believe in folks as well also every time. I'm running a business a technically one. I never run a business but to put a CEO in place who's been successful. And when I heard the usual look for someone who's done it successfully before at least two times because if they've only done it successfully once it could be locked done at twice. The chances are they really are good at it so they should be able to do it a third time. Yup and the other thing. I'll say is probably applies Neil as well but we are generally pretty direct with our feedback. Sometimes there's organizations where they actually all tied in with a couple of things but people will sugarcoat things right. People don't WanNa rock the boat. They don't want to make people feel sad. They don't want people cry generally my personality and Neal's first now is we delivered read feedback if things aren't going well it's like hey we're seeing this with the numbers right now. Does seem like things are going. Well what can I do to help right? We delivered directly back. But it's also comes from a place of continued to help the company before because the company is a high performance sports team so if things aren't going well for someone over time that what will try to do we got this from Bob. Glazer from acceleration. Partners is someone's done well for us over the years and it just doesn't seem to be clicking anymore. We'll offer a mindful transition program. Meaning that you know. We'll help them find something and we'll continue to pay them and then we'll make it a good thing for them where the departure was amicable and it wasn't like someone got fired from that right so there's no surprises on both sides. So that is what number three number four. I love creating ten percent. Profit sharing pool for people who can just crank and generate revenue. And I make a dog eat dog world where it doesn't matter what your title is depending on your performance. That's how much you can end up getting the lowest person on the totem pole. But if you're producing the most impact for the business in theory you can have a bigger stake of a profit-sharing pool. Now I try to do this for all my companies. It doesn't always work out and the reason being is when you first start amount allowed times. You're losing money or breaking even in those cases you can't have a profit sharing will once they grow to be big enough then rolled out that concept and I took a lot of the modeling from profit-sharing pool from Sequoia if you look out partners at sequoia capital when they invest in companies and they have home runs and exits? They don't just split the money evenly? The people who bring the best deals in performed the best tend to make the most money from that will all right number five. We encourage people to have side projects because we think the work that we do requires creative thinking so if you're working on side projects a lot of creative work that you're doing is actually going to carry over into company. Someone has a creative project really takes off good for them. They can start their own thing more power to them but at the same time my company actually got the benefit from the learnings that they put forth and the experiments that they read so better across the board people feel happier. And you don't WanNa limit people saying oh you can have side projects. I'm as long as not competitive to the company that they're part of Dan. There's generally no complaints another unconventional thing that we do in this is number six. We're really big on lunch and learns and I know a lot of companies are rolling that out and they'll disc of like a presentation on a topic are way doesn't work out that way so like for example on my last lunch and learn that I did. I tend to do myself. I'll end up breaking on topic so the topic was content. Marketing and blogging. And I went over with a group of how to write amazing content for blog posts and I didn't care what department they were in. Everyone had to start writing blog posts and on the spot so the lunch last hour. So I'm telling people to come up with the topic of teaching them how to write an introduction having them do it right then and there on the spot and then they got to read it out loud and I'm critiquing them critiquing. Everyone's I'm doing it in a positive proactive way where we can learn from it. When I'm critiquing I'm telling him here's what you can fix and how to make it better so I'll do these types of lunch and learn every other week and the reason being is helps people sharpen up their skills. No matter what position you're in you can always learn more. You can always be sharper. And I don't like just the concept of teaching strategies talking as you want them to do it because the moment they're doing it and implementing it that means are learning it and it works out much better for them versus them just reading about it all right last but not least number seven so we got this from Jeff Bezos. This is how Amazon things so back in the day. Even now they do. Something called memos and this could be basically. Let's Neil comes up with an idea right instead of saying. Hey I'm going to call a meeting because I have a new idea you're required to write a memo and sometimes really good memo takes a week or longer to write and it's basically okay. Here's the new idea but it starts with the press release so everyone is a down in a room and the read. The press release I another read frequently asked questions an overview around the idea. What resources required all this different stuff? So it's basically like a speck of the project with the press. Release in there so people can get a good idea of what they're trying to accomplish but what happens there after everyone had room the read the memo for maybe ten to thirty minutes or so then a debate will happen and then you know the last five minutes of the meeting. Basically there'll be a decision that will be made now what this basically forces is. It will scare people from basically throwing meetings whenever they WANNA throw meetings and forces clarity of thought as well and then also because you know everyone read the document and all the questions are answered from that document because that person all the effort you get a decision much faster and you move a lot faster and when you call a memo meeting like that. You're also very cognizant of all the time that you're going to take from the other people because if you're dragging a bunch of busy executives into a room and you know you clearly didn't think through things and they're not happy at the end of it. You are going to be in trouble at the end so memo expensive too right. You're wasting everyone's time everyone's getting paid. Which is a huge expense company? Neil you and I think about that all the time if people are just sitting in meetings kind of just messing around. We're just thinking about all the money going out the door right. Do we have a rule to in our AD agency. We don't like more than three people in a meeting. And it's not that we don't want meetings. We want people to work on the client work and not just sitting doing meeting. Because if you're sitting in a meeting you're not getting work done for our client. Sure you need meetings here and there to strategize figure out what we're doing how we're getting people better results but is not going to happen unless you go out there and do the work so we don't want people in meetings all day. Yeah Fun thing. I'll say from my side is I was reading hacker news. Basically you can just Google Amazon Hacker News and Jeff Basil's memo something like that right you'll find it and people that used to work for Amazon ended up starting their own companies. They said by far the biggest impact thing they got was learning how to take that memo system into their new company. And so I actually got it after. I was reading the Amazon shareholder letters. There's this book that summarize all the shareholder letters Dow's biggest takeaway. I got from that book so we started doing it and the results have been incredible so far so I'll have to report again on it. Maybe in a year or so but so far so good so I recommend checking that
"sequoia capital" Discussed on Acquired
"It's Koya for almost thirty years and then this is incredible he moves to Khosla ventures and joins Vinod over Rick Khosla in the mid two thousand and then he goes and he joins formation and he's now after formation clips. He is still an active general partner making and leading investments today. He just turned eighty nine years old. This is incredible. He was born. I believe in nineteen thirty in France he he is a true true legend in the industry but that's the kind of folks that Don is looking for is people who are literally going to die in the seat because their their lifeblood is building technology companies and peer absolutely fits that to a T. so then in the late eighty s two very very important people joined sequoia from interesting backgrounds so in one thousand nine hundred eighty six a gentleman that you gentlemen by the name of Michael Moritz now Sir Michael Moritz who was from the UK and had come over to America and had become quite famous journalist for Time magazine. I believe he he wrote book on Apple while he was still a time right the little kingdom I think it was called sounds right and that's how he gets really interested in Silicon Valley and technology and sort of people behind apple and venture capital he leaves time and he starts at VC newsletter letter with the goal of he wants to break into the venture capital industry. I remember is new again. You know other than this newsletter companies never built a company worked technology at his life but remember Don's Licken for these mavericks and he has a soft spot for people. They kind of do things their own way. Don Decides to take a chance on Mike and invite him into sequoia and to join the Partnership and tab that ends up being just incredibly incredibly prescient decision that leads the two Yahu and Google and other companies count as how to hack your way into as the first example of starvation Jason Yeah that actually probably will work today. I think there's a quote about Moricz which is he had. The journalist instinct linked to go for the jugular and not hold back and a friend said that about him David. We've started a podcast and have a love for media but I have this sort of reverence for for really good journalists who not only are able to to really tell a great story but sort of get the truth out there. It's a special talent for someone to be able to cover IT industry street and yet have their respect in this way you know we talked about the socratic method of questioning the Dan hold so dear and I think this is what he saw and Mike like and we'll save a lot of this for part two of our sequoia journey here too but but that's what Mike was so great at as a journalist and don on actually says he says the two people that he's met in his life who are the best questioners are Mike and Steve Jobs High Company the other. You're very important. person who joined sequoia capital in the late eighties is a relatively young brash sales guy comes from Hewlett Packard and son that also is an Italian immigrant decides that he wants to work in venture capital is called up one day cold calls them and says hey I want to join sequoia and if you know anything about the person that we're talking about this is exactly in character and this gentleman is Doug. Leoni who today of course is runs all of sequoia in all their operations globally and I I believe we'll be the person that ultimately advocated for and took sequoia into becoming a global double firm. We're GONNA talk much more about both Mike and dig next time on part but just to wrap up part one to get his really the story of Don and yeah I mean you can't extricate Don Donald from sequoia but from venture capital and the whole industry in total in Nineteen ninety-six after it had become clear earlier that that Mike and Doug were amazing investors and not only amazing investors but had internalized all of these things that it meant to be sequoia foyer and then built on them themselves. Donde something pretty amazing he literally hands the keys of Sequoia over to Mike and Doug Doug talks about this in an interview with with Dan primarily axios. That's I don't have the exact quote here but he says don one day in Nineteen ninety-six. Wchs invited Mike and Doug into a conference room. He sat them down and he said I'm giving this firm to you and there are three things one. You're going to run the firm. I'm not going to run the firm anymore to you. Get to decide what I do. You can keep me around. I can continue making investments or I cannot. It's completely up to you and then and three if you do want me around here's the things willing to not willing to do but one of the things I'm not willing to do as run the firm so like you guys make all the decisions about what's going to happen from now on and that's dislike even today that so rare I mean this is the first very successful what not the first in the industry but the first successful generational transfer its Koya most venture firms and most founders venture firms. Don't have the ability to do this. and it's so hard. I mean don created all of this and he's willing to say you guys as of the future changes part of not only what we invested in but part of the venture industry to and like you guys are the people that are going to lead the change. It takes a lot to do something like that. It reminds me a lot of another great venture firm that we may also cover benchmark who has a very different way of doing this very different. Yes but you know equal partnership. There's a greet sort of interview with Andy Rackliff and Patrick o'shaughnessy on invest like the best where Andy talks about how at the peak peaking power the original partners handed us the keys and I think it's a while done very differently there. There's there's definitely common elements between both of these these great firms yet. If you look at the firms that have managed to survive generation after generation wave after wave of you know the technology industry and and venture capitals evolution all excited. It's the firms that do this well the firms that don't don't make the transition and Donna's agreed when sequoia was started the positioning fishing was to LP's was we're going to deliver vastly superior returns to anything else. You can get out there and that proved well. We'll talk about it in grading but I think that pre true true but the positioning of sequoia is now two things and he says this. It's this stability that comes with generational transfers. The stability is part of why we have had had the same limited partners for almost forty years went down saying this now almost fifty years stability and returns is how sequoias positioned for the type of LP's that they're trying to attract witter patient very very long term capital. You actually need both of those. Things returns isn't enough. You need the stability that accompanies those returns so that people will have have confidence that like hey you can get great returns but if the firm blows up then you're you're useless to me. Do we want to go into what would have happened otherwise yeah. Let's do it all right to listener is the way that we WANNA do this. Section on this unique episode is what would the world be without sequoia and there is a very sequoia centric view of the world which is all of the technology industry looks very different and without building this sort of aircraft carrier strategy around Apple and financing all of that in a very scarce capital environment like there was then we we may not have you know the apple that we have today. We may not have some of the other tech giants that we have today day. There is a alternative you that you could take to that that says look capital is capital and the the the ninety nine percent of the value or maybe maybe one hundred and ten percent percent of the value that comes from receiving investment from venture capital firm is the capital itself and everything else is either. Hullabaloo or valued attraction and capital will always expand spend fill all attractive opportunities exactly exactly that we despite some friction points we live in an efficient market and if it's truly a great opportunity than capital will flow tube up to go and fund that thing and so the world would look no different today if a if there was no sequeira. I think I fall slightly toward the former part of that scale that I'm not willing to say that we you know we wouldn't have some of these amazing technology innovations without sequoia but I do think in just pouring poring over the hours and hours of reading that you know that we found about don and really learning about the history of this firm. Don played a very active role in in building building a lot of the companies that they invested in and deserves credit for that well listeners. Let us know how you like this type of episode focusing on venture firms we of course I love it as as venture ourselves but we've been talking all about sequoia in this episode there is really along the exact same time line there is a perfect example of what would have happened otherwise and that is Clayton Perkins which over this time frame that we're talking about was equally if not arguably Ghibli more successful than sequoia but what's really interesting and we'll dive into when we ultimately do an episode on on Kleiner. Their philosophy was quite different aren't and was a lot more interested in the entrepreneurs and the backgrounds of the entrepreneurs then necessarily downs Koyo were so I think to my mind would have happened otherwise of course silicon valley what happened of course the modern technology modern venture capital industry in startup industry would have happened even even though don helped catalyze all of it somebody would have and certainly Kleiner would've did kind of did but I don't think there would would have been as many chances taken opportunities given to you know the quote unquote not men's out there that sequoia was willing to fund and you know it wasn't in just in those days. I mean look at Airbnb in their early days and sequoias extremely prescient early investment investment in you know the three airbnb founders they then look lake what you know a prototypical founder looks like at the time far fire from it you know I think it's sequoia and Don's. DNA coming from a true incredible marketing background and Markets Focus that you know maybe wouldn't have developed helped in the same way without sequoia yeah and one way to look at this as like if you're the Kleiner Perkins in nineteen seventy eight. You know you are backing backing founders and outsourcing a lot of your judgment to them and you're just saying you run..
"sequoia capital" Discussed on Acquired
"Invest in three com in nineteen eighty two folks might remember three. COM which was made networking gear and eventually bought palm and the palm pilot three didn't realize came directly out of Xerox Parc so that's the other thing that sequoia kind of on the back of apple starts doing is they start reading Xerox Park and IBM's West Coast Division and all of these old school east coast companies that had been training these these technologists in developing advanced technology and they just commercializing them left right and center ninety-three they invest in Oracle and also Cypress I for semiconductor both of which become massive successes and then in nineteen eighty one one point. I WANNA make on Oracle before breezy because we of course we need to do an AH episode on Oracle Larry at some point but there's a crazy thing here that oracle went six years before raising money from from sequoia and I think they had bootstrap off of two thousand dollars and if you think about it like Oracle is really one of the first true software companies they were wildly capitol efficient fishing and Larry was very outspoken against you know pushing back against this rising venture capital industry and speaking all kinds of ill tongues of of the venture capitalist fearless and what they do and come in and try and control companies Ray than all these things and of course partnering with Sequoia Six years in but a very different start than a lot of these other companies. He's which required much more capital to get going yeah and the reason I didn't want to dive deep into it is that I might be speaking a bit out of school not having done the deep dive on Oracle and their history but to jump in and speculate a little bit. I think part of the museum that's it. I'm GONNA speculate wildly. I think part of the reason why Larry was so anti was was anti software anti-israeli. This was like didn't understand. Dan didn't understand software. You use a semiconductor guy all of these companies. We're talking about with the exception option of EA our hardware applications companies and so. I don't think Oracle could raise venture capital when they got started. They were the first real surreal software company. It's the highest gross margin of them. All you know I know fits that thesis so well but it wasn't you know the the venture world had woken up to that just yet they would they would go with to of course but but so much of the DNA comes from this hardware world the last kinda greet and it's certainly the greatest hardware investment that they make is in one thousand nine hundred seven. Don Invest two and a half million dollars in a little company called Cisco for thirty percent of the company started on the campus actually at the DSP at at Stanford started on the campus of Stanford Sandy and land where AH I can't remember which one of them was the it administrator for GSP one. I think was elsewhere on on the campus and networking was just becoming a thing and they were married. They're sending messages to one another and this is this amazing romantic story that they had had jerry rig the network to be able to send messages to each other and he's runs into Cisco and that turns into Cisco. I mean it just goes to show you these companies start and don having learned the lesson from apple of like you know hey will finance gingas. Kahn he he doesn't care like most would look at this team and be like we're not gonNA finance this team but he cares about the market and the application at the time there were no routers so networks like local networking it was just becoming a thing but networking networks was impossible and so- sandy and len developed the first router and to steal central square still uses this example well today of like the very very best most elegant expression simple expression of what company does it's three words for. CISCO WE WE NETWORK NETWORKS THAT turns out to be not just an enormous enormous market but really the enabling technology eighty four the Internet Cisco stock was the tracker for the Internet hype in the in the DOT COM era. I mean it was like if you wanted something that was emblematic of people's Apple's excitement about this new technology it was Cisco and so now we're in nineteen eighty seven where twelve years after the independent constitution of sequoia capital capital Donnas learned all these lessons. He's not letting this go so not only does he fully finance the company upfront with two and a half million dollars gets thirty percent of the company the company that goes public shortly thereafter I believe there is hundred sixty some odd million in the IPO downstairs on the board. Don doesn't distribute the shares. He remains chairman of the board. I think until the mid nineties and they ride Cisco up and make enormous enormous returns on this company and that is that really becomes the playbook for for quake apple going forward amazing run also just such a great example of like Sandy. Len were thinking about the Internet. Nobody was thinking about the Internet when they I started Cisco but things just kept the market kept evolving and kept getting bigger and expanding and don again being so focused on the market. They knew that like even though this company was public there were still enormous returns to be had because the market was nowhere near penetrated so alongside ride all these investments that they're making the funds kind of steadily grow in size from that first of three to five million it stabilizes at around one hundred and fifty million per fund in the nineteen ninety s that sequoias raising every three years or so and and having that be their investment period along the way of course to do that. You have to not only build these these companies but you have to build sequoia. You have to build the firm you can't do you can invest in all these companies and give them the time and attention that you need to do early. Stage Company Company building alone so Dan starts adding partners to sequoia and he talks about the process of doing this again. Remember back when they start lake the the number one requirement for being an investor quote unquote was going to Harvard Business School. not Fairchild semi-conductor business school to be clear investor in this sense was generally a public market investor or perhaps some other alternative investment but not investing in startups. I mean the Solomon Brothers folks probably looked at this more like gambling. Like what you're doing is an investing year not a person that looks like an investor. So what are we even talking about here. Irony of it all is. It's the exact opposite of gambling. It's building. BSO Sultanas as Greg Cody says adding new talent was and remains a continuous process. Conventional Conventional Education was never a high priority. You know plenty of folks have gone to Harvard Business School. You know who worked at an and work at sequoia but that's not what they look for. We look for people with functional experience in a startup I design and application engineering product marketing sales aspects of outsourcing manufacturing our investment decision making process requires very self confident people able to be challenged publicly. I look for people that are as far different as possible old than I am because we do things here on the basis of consent among the partners and I don't like having a modernized set of opinions. Don Wants people to be he says I want as much confrontation tation in different thinking as possible and he wants people that are going to be confident and comfortable enough to put their thoughts out there and debate as part of the group. One of these lessons that Don's learned is that sometimes times the most amazing companies like Apple Cisco. They look crazy and so you need somebody that's willing to see the potential behind the craziness and stand adopt them oftentimes..
"sequoia capital" Discussed on Acquired
"I don't actually want to run this thing day today. I'm going to be the chairman and really help these guys but regardless with this in a perfect example of Don's company building at work and management team at recruiting on the back of this apple raises their first venture capital round of just over over half a million dollars interestingly the lion's share the capital comes not from sequoia but from Vin rock which does a little over two hundred fifty thousand dollars Donskoy. Let's go to one hundred and fifty thousand dollars. Arthur rock does the balance so apple is off to the races and they really you know as we've chronicled many times and will continue to chronicle in the future really invent the personal computer usher that wave of technology in two years later though this is this is the David side there comes. This is just so painful so painful and clearly has left its mark on on sequoia two years later. I couldn't find all of the circumstances around this but to the best of my understanding so the first Sequoia Fund did not have only tax exempt nonprofit. LP's in it it also had I believe feeding individuals and maybe corporations and Dot Salomon Brothers better there folks like and certainly capital group as a result of that those folks needed to pay taxes and apparently some of these LP's or encouraging aging don to make distribution of some of the gains in the fund so that they could pay their taxes on the gains and so apple had grown quite quite a lot. It's now nineteen seventy-nine and Dan before the IPO cells sequoia steak which they had invested one hundred fifty thousand dollars for six million dollars A to make this tax distribution to LP's. Now that's an enormous returns phenomenal phenomenal return but oh my goodness six million dollars compared to what apple you know would shortly become and then ultimately in the long term of course become and it's this lesson that drives Sequoia Sequoia in subsequent funds to take to take their capital only from nonprofit tax exempt sources which becomes really not certainly the norm across the industry but a goal in the lion's share of money that moves into venture capital is ends up. Being University Endowments Foundations folks that are Super Longterm impatient and aren't going to force BBC's to make this terrible decisions like this yeah another you can sort of check me on this. David it but my understanding is sequoia more so than your average venture firm all holds the stock in companies longer after they go public and and often sticks with the companies for very long time I think probably also inspired by this lesson this and and others that we're going to that we're. GonNa talk about here. in Short Order Order you know we're going to talk about the playbook in a little bit but one of the key lessons that they learned is like when things are going well go along you know like value creation creation in these companies that are building and creating enormous markets takes a long long long time. I mean just look at you know AIRBNB. Look look at Google. Look at it. Look at Apple. You can still be getting enormous. Enormous value creation a decade plus after these companies are founded regardless of whether they're private a bitter public yep so it's fascinating to think about you know the first couple of investments. I two out of a handful of investments being apple and Atari in total you returned a profit of about ten million dollars or a Max of ten million dollars is wild to think that that is the sum total of of of sequoias return on those two companies. I know I know but at the time I mean like even you know pulling it into context today lake if we within the two to three years of starting wave if we could be sitting onto X. cash distributed like I would feel great about that you know but the lesson here is like that's not the game where the business business were in or the game. We're playing the game. We're playing is like ten x plus cash distributed and to do that. You really need to be in it for the long haul especially when you're investing early yeah the other thing to know here and David as you as you foreshadow and you've been smiling a little bit we will get into this much more later this season but with Atari sorry the Atari boom that we all sort of know of in the eighties was after it had sold to Warner and so you know it's quite an even have an option in participating participating in that upside unless they were going to block the sale yeah yeah totally and that also leads to another part of this quad playbook which is like when things are going well really tryin. Brian convinced these companies to stay independent and not sell. I mean look at instagram rate. Selling instagram to facebook was a it was a terrible terrible mistake by the founders and the investors even though you know it netted them great returns at the moment and was interesting. Sequeira ended up investing right before before that deal happen that is a debatable topic but we can. You think that's debate. I think if it had gone a lot longer than facebook would have had to pay a lot more more like in the dozens of billions of dollars to acquire purely because there is a very very high user count social network that is a threat to them however do I think that instagram would develop the business that they have today that is billions of dollars of revenue flowing through them by advertisers. Maybe but that's not a sure thing thing I mean that's all because facebook had had done funneling all their existing advertiser there. I think that's true and certainly the helped accelerate it grow it more quickly me but at a minimum instagram should've waited you no longer in an had what's ask acquisition their bare minimum you ah it's so hard to it's easy to armchair quarterback this now and aren't to be sitting in the seat of Kevin Mike when they have a billion dollar offer in front of them uh but this is the value I mean sequoias learn these lessons over so many decades and seeing it time and time again so the other lesson that they take from apple is what Donald Square call an an aircraft carrier approach that they start taking to these big markets they realized on realizes that apple has created this pc market and it's not just going. GonNa be Apple. That's going to succeed in the PC market. They're going to usher in all of these other enabling companies that you need around the PC so like apple is the the aircraft carrier but you need all the destroyers and the you know the ship surrounded and like all the planes on the ships and all that stuff so they start financing component companies companies around the PC industry apple and Don helped start a company called Tandon Corporation. That makes describes they are. I investors in ten and Tannin goes public public after a couple of years really market cap of over one and a half billion dollars..
"sequoia capital" Discussed on Acquired
"Is basically by today's standards saying it has to be a unicorn because in general an early stage call it a series A. INVESTOR IS GONNA get diluted to around ten percent ownership by the time. There's an exit sort of the finger in the air way. You would think about this stuff. Offs acquires had some examples where they've bought up more think dropbox and there's also examples that were about to go into where the terms were much different and and you didn't just by fifteen to twenty percent of company bought much more in these early days companies. Most of them weren't raising multiple rounds. So Sequoia was financing that was the only private capital they're raising and then they were going achieving profitability and going public but still you know you think about today. People talk about you know. Oh have you seen investment you. GotTa underrate underrate tax returns even from Day One don's underwriting to twenty x plus returns and if he doesn't see that and still to this day I mean I think one of the things sequoia is really known for is they will only attack markets that truly have the potential to be large like a billion dollar. Market is not enough for them. You need a multibillion dollar. ideally ten plus billion dollar market because again like they're aiming for each of their investments to make twenty x plus and in the final. I love this. The final item on the checklist for for downs criteria for investing is must be positively responsive to our active participation. You know which is great though at Aetna obviously Donna developed quite a reputation as we as we talked about with trip on the episode being very active and being not only governance but influencing management of the companies. This is really critical Lake Don. He has the credibility ability to be very active in these companies because he has helped build the previous generation of of defining companies that are setting the roadmap map for everything. That's going forward. The other thing that he develops is is is a methodology for assessing entrepreneurs David Book before diving into the entrepreneur side of things the thing that struck me on these ground rules as we've danced around a couple of times here don plays by his own roles and he sort of has this ethos of the this this early stage investment businesses of subjective business. It's not a highly analytical data driven business like it's a it's a feeling business and yet in these ground rules. It's interesting to see what hard and fast financial things jump out so even this high area of subjectivity in Gut feel must have high gross. Margin ability is in there as one of these precious few rules as an early stage investor. That's that's really ringing home to me and thinking about how important that is in the ability to to sort of of course scale company but generate outside returns the only number that you see here. Is that that hundred million. I'm the only thing that sort of close to resembles. A number is high gross margin ability. It's interesting to think about what makes the cut well at. This also leads into the his. This is method for assessing entrepreneurs but Don You know as so many other things in pioneering venture capital industry like I think he I don't think he would put it in these words but he recognized that this is a business that is both art and science and that is what is so incredibly incredibly awesome and fun and rewarding about working in this industry and in early stage venture capital but again if you think back to the folks that were doing this before it was all art you know and if you think to a lot of the entrepreneurs who are starting companies like the trader is aid it was all science like they weren't thinking about the art of like Oh. How do we make this until like a huge wealth generating vehicle for ourselves and for the ecosystem it was like we just want to go do science and let's like find some way to do. Science and I and Don is really the first person I think to bridge this gap the methodology for assessing companies not to preneurs he kind of goes back to and I assume he was doing in this one. He was working at companies to remember. He has this Jesuit Education and Baddiel Catholics upbringing background and he goes to he goes to the socratic method still to this day. I think this is a lot of how sequoia runs their interactions with entrepreneurs. They ask questions and then they just listen to the answers. There's this is such a key to being a great. VC One thing that I struggle with ton is like you can. The temptation is always to insert yourself into to what's going on. Don recognizes that like what you need to do is listen to what the entrepreneurs are saying you agree or disagree or like understand or not. I understand but like you need to understand how they think about things. Not How you think about things and it's it's not about their answers but wh y they're thinking that answer is the right answer and how they arrive there and what the thought processes and so eight. Oh Don talks a lot about if you watch the youtube video of of of him Stanford how formulating question he believes is the most important thing in his business and so he has a rule that questions can only be twenty words or less he would. He solicits questions from the audience at Stanford. He says twenty lesser. I'll kill you it's great but that's how he approaches things because he's really interested in the storytelling technique of of the entrepreneurs because he says it's about the building of the idea the size of the market that degree of technical risk to get this product finished who's going to care and explaining that in a very simple way we can tell that that person who can do that explain it in a very simple way somebody we want to be in business with people who are instead complex rambling all over the place. They're not you know. Donnas realized that the value the only competitive advantage that startups have is focus and speed and stealth and so if you're all over the place you're not not going to be able to execute on those things and that's still true today so David. How do you square all of this with Don's sort of of oft-stated principle that he invests in markets not founders yes. How does this assessment of founders fit into that notion. Well you know and I'm asking you as technology historian not yes obviously you're not in doubt. Don's exactly well I think of course they're interrelated related and lake all investing it is it is early stage investing. It is about both the market and the team but I think that's this is the key is like the market is the important thing thing but you need a team gets back to Don's last point on his checklist of must be receptive to our active participation. You need a team. That's going to be focused and and able to quickly get the right solution into the market and so he has this really great quote that I think encapsulates. This says so. Our view has always been preferably. Give us a big technical problem. Give us a big market when that technical problem is solved so we can sell lots and lots and lots of stuff. Do I like to do that with terrific like people sure are willing to invest in companies that don't have them sure you can augment management. You can help them with more people that are highly qualified. We we invest in the size and the dynamics of the market. I don't care if Gingas Kahn is running the company. We'll give Giga Council health and give me a giant market always Steve Jobs is GONNA come up in a minute here but I think you know his point about Gingas. Kahn is that Gingas Kahn maybe gingas Kahn but he was focused on on you know winning and speed and conquering and that's what they're looking for and that just beat the metaphor to death and that Genghis Khan also also has weaknesses and therefore must have a team that surrounds and compliments and I think don has some quote I don't have it exactly but about how the the most critical thing for an entrepreneur went sort of listening to these questions what are you listening for is is really this self awareness of what they're good at what they're not exactly a point number six how receptive captive. They're going to be two to being helped with those weaknesses. Yeah I mean again. Think back to this moment in time. The people that were starting these companies they were engineers. They were scientists by and large and Don's superpower was he was able to augment these companies in these teams with breath folks like himself who were able to sales and marketing and go to market and then sequoia could help argument augment with finance and Accounting and everything around that and and the outsourcing of all that what he couldn't have was folks who thought they knew everything so what actually did they end up investing in once they closed this the first Sequoia Capital Fund in Nineteen seventy five so it turns out. Don makes his first investment in indeed a quite giant market enabled by semiconductors but one a little off the beaten path and certainly different than the defense contractors that he started his career selling to and that was as Atari and we're GonNa talk much more about Atari later in the season ear on acquired but it was the very first independence equate capital investment don invests six hundred thousand dollars in the company in nineteen seventy five and the very next year the company ends up getting acquired by Warner Communications for twenty eight million dollars. He's at sequoia makes a quick for x return which is great great. IRR but does fall short of the twenty x that Don is hoping hoping to under a to did I find a different source on that. I thought it was a two million dollar initial investment or was it did he do a follow on for two million and I believe the initial investment was six hundred k. Now Atari had also already been around for quite why not Donna three years they had gone without before raising. Yep and Don had no no Nolan Bushnell the CEO for for many years so I have to assume this was one that he had kinda waiting in the wings until he closed the fun which venture capitalists should have went out raising their first fund is an investment. We did that too that we have. It's amazing. It's amazing how much the industry is still the same so then in nineteen seventy seven sequoia makes what could have been uh is their biggest and most important investment ever and unfortunately becomes perhaps their biggest most important lesson just to pile one more thing on on before the big reveal which everyone probably already knows is responsible for about a trillion of that three point three trillion number that I quoted of public market value today. Yeah Yeah Yeah well. It's a good thing they still have another two point three trillion that part of so in one thousand nine hundred ninety seven as aaa two on our episode Sequoia Royal Investment and other little company that was founded by an early former Atari employee that was Apple Computer Steve Jobs had worked for Nolan Bushnell Atari and Don had gotten to know a little bit then and they still jobs and was had started the company and they brought on Mike Scott as the first president the company now we should say de Doug to no jobs a little bit at that company but did not have the impression that this was a venture backup old guy at this in time. I believe his quote on. Steve Jobs was that he looked like Ot Min I so mike the the two steves had brought on the first president and it turns out Mike used to work for Don back at Fairchild and national and so don gets wind of the company company he meets with them and Don also knew a very important guy in apple's history. Mike Marla also used to work for dod back in the semi conductor. Today's and Dan Quote Unquote sends him to the company with the intention that Markel is going to replace. Mike Scott is the president run the company ultimately though the trip talked about mark makes brilliant decision says you know..
"sequoia capital" Discussed on Acquired
"Fairchild and national and the whole semiconductor industry he knows what markets attack so he has like the selection judgment of which founders and ideas to invest in and then he has the ability to actually help them unlike anybody else in the industry at the time actually help them build their companies through through certainly recruiting management teams but also strategy and decisions in the early days because he's lived through it so we can help them build their companies and now finally through capital group he he has access to essentially an unlimited pool of capital which again nobody else in the industry had people were having to go back to the East Coast Fairchild to finance their companies so David. You're saying an unlimited pool of capital..
"sequoia capital" Discussed on Acquired
"Speaking and that's one thing the Dow is not afraid of so remember nationals public company and they have to do earnings calls with Wall Street even back in nineteen sixty eight Charlie's terrified of this he doesn't WanNa do them and so as soon as don shows up he says Great Dan your head of sales and marketing you lead the earnings calls. Would you be unheard of today for I mean it's your CEO and your CFO without you know without without exception Yup Yup and you have other executives on there from time to time but Asher leading it dance tights leading the earnings calls through that he gets tim no a lot of the shareholders of national and it turns out that one of their largest investors is an enormous public investment fund based based in Los Angeles back and downs old stomping grounds called at the time called the American funds and that was part of this institution called Capital Group which I think a lot of people well don't know about but capital group still today is one of the largest mutual funds and pulls. A mutual funds money managers in the world. Am I believe they have well over a trillion dollars in capital under management across many many funds capital group they had been seeing what was starting to happen up in the new Proto Silicon Valley they'd seen the until IPO that had happened. which had was the first into was the first true venture venture backed company that had gone public and all the wealth that agreed and who originally backed Intel. I believe as Arthur Rock rock organized a syndicate correct. Intel with equity well. It was a convertible instrument. It was like convertible debt. I believe a story for another day so capital group. They'd seen this and they actually funded. Amd an amd also came out a fairchild which I didn't know research for this for this story so yeah both Intel telling amd both were fairchild alumni. I mean the really August back to the traitorous eight in this legacy of Lake hate leaving dying companies and and starting new ones out of them that propels Silicon Valley to its day to this day that is so much like all these other industries. We've talked about verizon. At and T. basically both coming out of the the original massive. At and T. Company feels like chip companies are not unique in this characteristic of both modern giants. It's coming from the same source yeah yeah so capital group. They've invested. They've privately funded. AMD they're big investor in national so so they're like you know especially as a public investment vehicle. They're at the forefront of being investing in Silicon Valley in its growth they get to know don on and they learn from done about all this private investing is doing and so they approached him with an offer howl about he do this fulltime leave national national and common start working with them at capital group. They'll give him you know certainly capital and they have more capital than probably just about anybody in the world at this point in time access to capital and take him from you know the couple thousand dollar personal checks these able to write great to finance these companies up to enough that he can actually support them to get to get to a public offering where they need to so don jumps at this chance. This is his true passion. He loves this and this is a chance to take all of these road maps and marketing and market analysis this skills that he's developed and just have this be his full time job. This is of course the birth of the illustrious name. We all know today capital L. Management Services Inc he well. It was part of apple groups. We'll get into the structure in a second. I want to throw in a few great quotes from from down here. He talks about why he had the courage to think that he could do this fulltime. This is crazy like nobody is investing fulltime in private technology knowledge companies at this point in time. It's it's you know a bunch of folks who made money in other industries having lunch at the Mark Hopkins Hotel. Remember and down is going to make this his full-time job so he said I had a sense sense that my system of selection would work far more than it wouldn't but I didn't have the resources personally to play Texas. HOLD EM and put up more chips the opportunity to have a large discretionary Mary Pool of money to continue to support the investment. Ideas was the difference in the environment. I was in and the environment I was interested in going to and after twelve or thirteen years in the semiconductor business I I had a very high profile reputation in this community and again he was already doing the investing privately so he says so people who are interested in starting companies often gravitated to me to help them start their companies from their point of view. I had some money I knew how markets worked and how to help them position their company in the market so I had a bit of an unfair advantage in those two respects back but the most unfair advantage I had was I knew what the future was and very few people knew what the future was. Nobody else nobody else in the venture capital industry at this point was from the semiconductor business. Nobody else knew marketing and nobody else knew the microprocessor. So it's kind of like Don has this as we've talked about rose three pretty valuable able things to be good at at this point in time exactly exactly so like if you think about what what he's saying so it maps pretty exactly to the core functions of a venture capital firm so.
"sequoia capital" Discussed on Acquired
"La Out in California California love and Life Surfing he was a big water polo player and he's working in what at the time was the high technology industry industry selling computing solutions to the Defense Department in the military he starts taking part time courses at the business school at Ucla focused on sales and marketing because we're really interested in of course sales which is his job but also the marketing component like who are we selling to and why and he has a great quote he says you ah where is the decision making process integrate company. The answer is it's in marketing in a well run company the Marketing Department in conjunction with the Science Department science being gene engineering. It's time decides based on what their capabilities are. What the problems they can solve what sequence they should solve them in and how much money they can spend they can spend on building that that product and how big is the market? Who's going to buy this stuff and all that happens within marketing in a primary position? This really becomes Don's life passionate. Hashing ethos ends up informing everything he does and everything. It's quite capitalist. We'll see so after a short stint at Raytheon he ends up getting recruited to move up to northern California and joined a fresh start up in a really hot semiconductor your company up there. Fairchild semi-conductor was was fairchild independent at this point or where they still a part of the the bigger umbrella no they were they were this was still very early. They were part of of of Cameron Instrument as C Don Joins. He's not part of the traders eight but he joins. He's like employee number forty or fifty. They're doing a couple million dollars in sales els but still really small and at first they put him in charge of of selling Fairchild Semiconductor's to defense firms back in southern California so they sent it back down to southern California and she's kind of funny. It's it's exactly what he's doing the army right. It's educating out modern technology to people who who had been doing things in older way and trying to basically do a very complex sale. I mean it's kind of amazing that like you know. Don's history from yonkers New York everything basically basically you know sets them on. It's like Steve jobs quote of like you can't connect the dots looking forward but looking back. Everything done prepares you for what you're doing now. Don Don basically knocks it out of the park selling selling to defense contractors down in L. A. He takes the company from at this couple million dollars in sales when he joins to over one hundred fifty million dollars in annual sales in just a couple years and and it's over that time he gets promoted ends up running all of sales and marketing for Fairchild and he starts using everything that he's learned his passion for marketing to tap into like hey eight. Maybe we should be selling to other markets. To which other markets should we be selling and are there things that we can do to customize the chips that were making to make the more applicable to these other applications records the quotas. Here's business was so good. I mean this was like to be at this moment. In time. It was like it was leaked to be there. In the mid mid nineties when the Internet was taking off for the Mid-2000s One web two was taking off and it was literally just like you could see the roadmap of what all the applications we're going to be and it was just like go build them first and best yeah not only did the semiconductor have perfect product market fit but it scaled horizontally across tons of industries. I mean everybody was going to need equipment that required semiconductors and and I think now we take it for granted who actually were in this phase where we're sort of moving forward from. It departments into you know companies that don't have it departments but this was the development of it. You know this was ever every company that was starting to embrace technology would use something with semiconductor products in it. Yeah I mean we're we're going to see this here in a minute with the personal computer and Apple but then with the Internet than with web two dotto then mobile like you have this tectonic shift and then it's like okay okay. We know what the applications are. Let's go build. The applications and John is really the first person in in technology recognize that these are this is the dynamic of how the broader our technology ecosystem works so he says business was so good that we had more opportunities than we had engineers and we devised a bit of an ad hoc technique for evaluating. Are you waiting different companies companies that fairchild could potentially work with and sell to before we commit our engineering resources to work on them on a specific project we had understand the nature of the application and understand the size of the market there a number of kind of highlight things that we did before we committed engineering and you could think about that and think about like gosh man that sounds a lot lake writing an investment memo for a venture capital firm. It's also what what an incredible privilege to to being a position where you get to pick your customers based on who you think is going to be the most successful with your product yeah yeah totally so remember though uh-huh. Don's working at Fairchild he's taken them from a couple million in revenue to over one hundred and fifty million in revenue and this is like the early nineteen nineteen late fifties early nineteen sixties so one hundred and fifty million wasn't just one hundred fifty million back then remember though Fairchild. It isn't an independent company. It's a subsidiary of this long long island-based East Coast you know conservative Cameron Instrument Corporation so every time that don is working on building you you know a new customization and application market that Fairchild wants to enter he asked to go to the board of the company and get their approval for what they're doing and concerts that goes well enough like incentives are line of course. Fairchild wants wants the company to grow and do well but don gets this idea. He's like you know week. He could really accelerate our market and our partners that we're working with a lot of these applications. Companies are new entities entities that are integrating our technology into a full solution for a given industry. They're getting off the ground. We really accelerate things if we invested in these companies and helped them help them build themselves because the the bigger that they get and the faster that they get bigger the more sales. They're going to have more sales. We're going to have right. It's this ecosystem assistant mindset. We help invest to build the ecosystem around our products totally so he thinks this is brilliant. He takes this idea to the board and the board his he's like absolutely not. That's a crazy idea who ever would want to do that so don in in typical down fashion he says well screw it. If the boards not going to do this. I'm just going to start doing this on my own with my own money when he would be working on the on the technology and marketing roadmaps for for Fairchild and working with startups to help build applications he would just start investing small amounts of money personally in these start ups that he knew that he was going to make them. I'm into big companies. The only problem though is like he's doing this personally. He doesn't have enough capital to really get these companies. All the way to work and you know it's so funny. How like we we don't care wave like you know. You're you're raising money for a new start up and they don't even today twenty Nineteen Lake the answer for how much capital title you need always comes back to like you know somewhere between one to three million to get off the ground and that was the case even back then is this is totally amazing. This is like my one of my biggest tech themes but it is crazy looking at their first five investments two of them were at two million and one of them was a two and a half million and it like it is today seed round and yet what they're doing is. They're building freaking you know semiconductor physical applications like they're using semi conductors to make another product physically manufacturer facture like it is the facturing like totally yes so even back in the sixties a couple million back then was a lot more in today's dollars. You had to do all this really hard stuff. Don Starts doing this fast forward to nineteen sixty seven and another company in the valley. that had been around for a longtime it was kind of foundering called national semiconductor and national makes a big play. They're already a public company. I believe they they poach a number of people from Fairchild including Charles spock who becomes the CEO of national and Pierre Lemonde from a AH name. That's GONNA come up again racy appeal from Fairchild who becomes the chief chip designer and head of Engineering there so Charlie spock CEO so he does a couple of really interesting things. I is so everybody in Silicon Valley at this point remember. It's called Silicon Valley because they're making silicon chips. They're making the chips. They're in northern California Fairchild producing them. They're all these companies that Don's investing in their doing manufacturing right there Charlie and national he off-shores ars chip production to Asia and he he reasons that like hey the intellectual property that we're building here. We can just do all the design and building here and we'll just just outsource. The actual production of these chips of the silicon is a commodity so that creates a huge price war in the industry and massively passively lowers the cost of silicon which then ends up in ebling all the things that comes shortly thereafter including the PC. We should also say that the incredible all growth in demand for silicon is fair child's fault because Fairchild was the one who pioneered the idea that silicon was actually the most effective material to US four semiconductors conductors. That wasn't the case before I believe before. Fairchild people were using GERMANIUM semiconductors which is a rare precious metal. Yep National would actually go on later to acquire Fairchild and then do you know who would ultimately become the of national semiconductor. This is this. This is like the beginning valley being a small place and all of these dynamics enabling the personal computer Gil Emilio. Oh what yes house apple fame yes future. CEO OF APPLE I I've laundering CEO of and I believe his first CEO Gig was taking over for Charlie as CEO National Yeah so all of this is going on. Fairchild is on the ropes in Nineteen Sixty Gordon Moore and Bob Noyce leave Fairchild Child. So Don Valentine still there and they start. Intel and Don sees the writing on the wall. He's like Oh man. Fairchild is cooked brain-drain. Yeah brain-drain just like Silicon Valley today. These things start happening like the the key leaders really smart people start leaving the writings on the wall he leaves. He moves over to national as head of sales and marketing national now. This is where serendipity completely strikes if John hadn't made this move I seriously doubt that there would be quiet capital and there may not be a modern venture capital industry as we know it today so Charlie is obviously Salihi brilliant and this move of outsourcing production of chips is revolutionary to the industry and oppression and quite present but there's one thing that he's absolutely terrible at and that is public.
"sequoia capital" Discussed on Acquired
"Out one. Since its founding in one thousand nine hundred seventy two the firm has helped to catalyze companies that now represent three point three trillion dollars of public market value and for context next the entire. Nasdaq is ten trillion dollars. It is frankly absolutely unbelievable that a single firm can be responsible for helping to create so much of our our modern economy. David this bananas yeah for Comparison Sake. What did we say next which is one of our a. Pluses we said generated needed a trillion dollars market cap value the next acquisition so here. We are talking about three point three trillion dollars. Obviously it's venture firm not a company but this is one of the reasons I've been so excited to dive into this new category here on acquired and can't wait to tell this history of square capital absolutely now before we dive in. I WANNA thank the sponsors of all of season five Silicon Valley Bank this wonderful paragraph that I have been given to draw from as inspiration starts out big ideas don't fit into standard packages but before we go on I want to dive into what that means in practice and and why does it make sense for entrepreneurs to bank Silicon Valley Bank startups aren't normal businesses at all. I mean what small one two three person company is going to somehow have millions dollars in their bank account but have little to no revenue for months if not years when you're running a startup you need a bank that understands the way startups work and is used to something that we all take for granted granted but it's actually a quite recent modern and specialized type of business right tangent over that's why Silicon Valley Bank has banking and financial solutions tailored for startups that help them reach their next milestones faster visit. SBA DOT com slash next any x t to learn more and thanks says always to Silicon Valley Bank so lastly are limited partner bonus show. This week was kind of fun flip for me. David interviewed me on what is a startup studio.
"sequoia capital" Discussed on Behind The Tech with Kevin Scott
"Advice. You were like. Okay like here's the vice I'm GONNA give you with my google hat on <hes>. which is you know what whatever that was <hes> and then here's you know the advice that I'm GonNa give you with <hes> without the Google hat on which was <hes> like just super are helpful to have both of those perspectives and making that decision which would really hard got a hard time leaving <hes> because it was really it was a great company and I I had so many friends there and I felt but <hes> so grateful for the opportunity that I'd gotten which I was I you know I think a lot of it was lucked? There's no way that there's a lot of luck in many outcomes in life as a lilac just extraordinary ordinary amounts of it <hes> but you know I like that advice you game. He was like one of the is and it was certainly like a pivotal moment like the whole my experience with Atma like without that I wouldn't have been able to get the role that I battling Dan without the role that linked in. I wouldn't be sitting ears C._T._O.. Microsoft and so you know I you know I'm glad that you're out there. <hes> like giving other people <hes> this really good advice <hes> so what made you decide that like this is sort of thing. That's worth your time because you were doing it even before it was like officially your job is <hes> like a venture capitalists. You didn't have to take at that meeting that day or like any other times you know because I I was I was way below you in the in the in the Org <hes> and and you weren't just doing it for me. You were doing it for a bunch other people so and maybe this is one of the things I've I've tried to do as a leader I <hes> I think most you know when you're employed by a company. You're employed by Google goal now. I'm employed by sequoia capital. You have to have a loyalty to your employer but I also think as a as a leader inside of any organization you also have to be authentic and when you have to <hes> if if somebody asks you for advice they don't want <hes> the company line they they want real advice and so what I what I've always done. The last many years design will give you my advice as a leader inside a company but then I will also give you my advice as an individual and I think to me that's been one of the things that I think uh has bonded people to be over the years because they feel like they're not getting a bunch of Political Mumbo jumbo <hes> which unfortunately I think particularly folks in large corporations. I've known a number they they can only we talk in the party line mode and they never get out of it and I it makes them <hes> appear even if it's not true as as phony and so I think part of it's just being genuine authentic. When you talk to people it's it's sorta scared to do because when I was running <hes> running engineering and operations linked in which grew over the course of you know the six years that I was doing the job from a couple hundred people to about three thousand I took this key from you that I was going to try to be authentic as possible when someone came to me like they were struggling with a problem and <hes> like trying to figure out what the next step was for them and like I would do almost exactly the same thing that you did for me and like if they were contemplating job offer it's like here all the many reasons why <hes> I would like you to stay because we really need you here and you know we walk through the whole thing and then I would <hes> and then I would give them you know oh my unsolicited advice and sometimes it would be like hey? I don't think that this is like based on what I know about you and what you told me about your aspirations. I don't think that this is a good move for you and sometimes I would tell people's like this isn't a bad option and like you are you are now faced with a tough choice like I think it's a you've you've got a good option here. You've got a good option there and and the thing that I found though like even like this horrifying thing like when you are are leading <hes> you know a group people and like you and in a very <hes> sort of very concrete way or dependent on them to be able to achieve all of the things that you know you're trying to get your company to achieve but I found like having those conversations like I think because people believe that I had a genuine interest than like in their success and their happiness <hes> like I wound up being able to hold onto a bunch of people like way longer than I would have otherwise that's right right but it was hard to do <hes> because it feels very scary yes risky. It feels risky. I I understand I I think the other thing which I saw it Aghoul and I suspect you've seen in your ear arc to is Goule hired a lot of very bright kind of new grads or there was there first or second job and it was fairly common for people after a few years to Kinda wonder what the world looks like outside of you know the particular confines a mountain view at the time and that's not irrational for a young person <hes> and and on the other hand Google wanted to retain those people and that there were some difficult challenges that yeah so what's what are the most interesting things that you're seeing in venture now so like it's it is an exciting time <hes> right now because there's a lot of venture capital all out there. It's never been easier to start a technology company because you have open source you have all this cloud infrastructure. You have like an increasingly powerful set of capabilities small teams accomplish big things and like you're at sequoia which is like one of the top venture capital firms in the in the world so like what's what's interesting right now well. There's clearly a lot of interest in <hes> software around machine learning YEP. I think that there there's a bunch of companies trying to create tooling or do vertical applications. I think there aren't many companies proposing to do platforms because you've got ten pie torch and other things in them in the market from companies that have obviously much larger resources than you can mount from startup but the sort of machine learning software and getting machine learning that's usable indigestible by a broad community is very hard to do and I think there there's some interesting ideas and companies around that there's a lot of interest in <hes> processor technology both for machine learning but also starting to see some companies that are talking about rethinking moored server processors more generally and so forth and so I think there's a lot of that that those are harder companies. I think for venture capital just because it requires hundreds and millions of dollars estimate rather than you know tens of millions of dollars investment so I think but I see interest in that area <hes> there's a one of interest in quantum computing. which is you know people will debate whether it's about to go commercial or whether it's still going to be researched for a few more years? It feels to me like we're on the cusp of a bunch of things right now. In that area those are those are very interesting and then they're interesting companies in storage networking and so forth but I think the big things have been processors machine learning and and then quantum are areas that I think are particularly interesting and the processor trend friend aside from the <hes> machine learning stuff like we're seeing with distributed systems right now that like architecturally like one way to compose these things now is <hes> is streams and stream processors <hes> which are going to have different compete requirements than normal sorts of processors. There's also like this interesting thing where you should reach your sort of power saturation point with <hes> with transistors sisters for logic but you haven't yet for memory cells yeah. I think there's trade offs now that people are rethinking about between actual logic type processing versus memory. What kind of embedded memory do you want? What kind of memory structures there's obviously new kinds of memory coming into the market that don't require de Ram refreshes voter faster that that's another area that may be interesting? I think the other thing thing which strikes me as a big challenge people think about processors themselves as you know there's been some fascinating were kind of security side and very scary people did not think through all the risks with speculative execution and on the other hand. If you throw speculative execution out <hes> you hurt performance a lot and so I think there are people trying to think about how do you think more from first principles about with the security risks are are in processor design so that because when you when you admit security weaknesses at the very bottom layer of the hardware it's pretty hard to defend against and <hes> it's scary in new ways right and so I think there there are a lot of interesting things happening in and around that area yeah are you. Are you seeing stuff with the <hes> in the IOT space because I the processors they're like still have a couple of generations of real Moore's law left in on them so we're we're saying a bunch of companies around <hes> there are a lot of people looking at processors for the edge where they can do some inference. Maybe a little bit of training I think and and Dan very low cost kind of microcontroller level designs and so forth. There's a number of interesting new ideas and companies in that area. I'm when I've looked at Iot. I've mostly looked at things related industrial iot because because the I think consumer Iot has been tricky for variety of reasons one is often driven by brand and consumer reach which I think advantages companies like apple and others <hes> and I think the other the thing is is smartphones or two good doing a lot of different things and so the killer APPs for the consumer. Not I think has been pretty limited so far personal opinion but there you go yeah I mean we we can certainly see that the Industrial Iot I._T.'s stuff like the applications. They're like rich and like there's an enormous amount of opportunity there <hes> I I think we sort of see the world and in similar ways yeah no it's consumer consumer Iot the I think more and more devices are connected and have some ability to respond to command and so forth and we'll see a proliferation of that but special use cases I think are they aren't enough interesting use cases as I talked to people that have Alexa devices or you know the Goule home devices and so forth and they use them to set alarms and timers and play certain kinds of music and so forth and then they rapidly seem to run out of the things things I can do with them. The thing that I think is a little bit interesting though is that the capability in these devices already <hes> like in both hardware and the software is much higher than what we're using it for absolutely so just just today <hes> proof of concept thing like I'm. I'm building a A._I.. Coffee Machine Right now <hes> which probably sounds weirder hitter than it actually is but like the ideas. Can you build a consumer appliance from scratch like as an individual although like one with slightly more resources than average individual <hes> but like can you build. Can you build a device that has like a modern A._i.. Power user experience in it is like this thing we'll have no buttons no displays and it will have a camera speaker in a microphone and so like when you walk up to it and like it knows that you're paying attention to it using very straightforward computer vision models it will say to you. Can I make you a cup of coffee and it will be able to recognize who you are and remember Knbr your preferences and <hes> no that's an entirely you know entirely doable mode of like building building a user interface on consumer device right now and it's it's going to be not too terribly expensive in the in the not-too-distant future like I'm going to be able to do this with thirty bucks worth of <hes> worth of electronics and like the price of that's going down to two over the next few years. I would imagine I think I think you'll see that in a lot of consumer devices but they'll be very limited narrow use case so <hes> I just I'm. I'm just super precise about about what's possible. There's I want to get people inspired. The do more I think human interfaces that our voice driven Kevin and and have some aspect computer vision is clearly where things are going yeah. It's awesome well. Thank you so much for taking the time to talk with US Today Bill. It's been a pleasure. It's been my pleasure to be here. Thank you for again for the invitation awesome <music>.
Scooter startup Bird raises $300 million in latest funding round
"E scooter startup bird has made it official announcing today that it is raised a new three hundred million dollar round led by sequoia capital the valuation of this round was at the two billion dollars that has been rumored so if you'll remember in march of this year bird had a three hundred million dollar valuation last month may the last time it raised money bird was at a one billion dollar valuation and now the end of june a two billion dollar valuation so if this is really one huge fad and really one of the oddest ones in recent memory add like to point out it's a fad that literally everyone in venture capital wants to be in on let me read you the list of the investors who are reopeing in this round for bird craft ventures index ventures valor gold crest tusk ventures and upfront ventures and let me read you the list of new investors to bird a cell be capital c rv sound ventures grey croft and evancho's anyone else you can think of has probably invested in birds main rival lime including gv and andriessen horowitz and let me read you this quote from crv's sar about why has firm wanted to participate in this round because i think it gives us some understanding of what vc's see all the scooter hype quote we have met with over twenty companies focused on the last mile problem over the years and feel this is a multibillion dollar opportunity that can have a big impact in the world we have a ton of conviction that this team has original product thought they created the space and the execution shops to build something extremely valuable here and we have been longterm focused not short term focus in making the investment the quote hype in our decision the non zero answer is that bird has built the best product in the.
"sequoia capital" Discussed on The Ezra Klein Show
"To support the current demographics of the tech workforce especially on all the different levels in the specific function so for me it's like you know they're really trying to experiment and they're thinking about hey in you know twenty years this is what the population is going to look like an even more so so i want to get a head start and make sure that i'm able to reach as many people as i can and to recruit from as wide a candidate pool as possible and i want to make sure that you know people have opportunity to do their best and to work on teams where they're not the only and are able to you know get a chance to succeed and to contribute so i've i've to thoughts on this so one staying on the the devil's advocate position here for a minute i think there are two ways people discuss this one is that we're trying to get the best people in the door we're trying to open up the recruiting pool we're trying right we wanna make sure we sell the best candidates and then at the end will choose the best person you know we're just trying to be even sure what we've always been saying we're doing then there's another version which is no we've decided actually that to be the best company we can be we need to be more diverse than we are and the best people sort of irrespective of some of the things we've traditionally selected for or like the fact that the job is has called engineer like we've decided the best people like if it's not a a woman or a person of color in this position given wetter company demographics are they're not gonna be hired my sense is that to get to the diversity numbers a lot of companies want to get to or argue we need to get to that more of that has to happen than has but that is also something people are very uncomfortable defending it makes many people very defensive you of this great quote great i mean by telling from sequoia capital in your book i believe it was who said when they had zero women in their whole senior venture capital team the one thing we're not gonna do is lower standards which clearly that was not the issue but there's a real tension between.
"sequoia capital" Discussed on Acquired
"Yeah he's funny now you've got me like wanting to search back what's the first email i i had that that had dropped accident nine seven oh eight i've been invited to the dropbox beta by paul september seventh two thousand love for you to try it out your beta sign up code is this what is dropbox share the love thank you get dropbox dot com that's awesome yeah for some reason i couldn't find my i think i signed up directly but i didn't get any like email confirmation so i don't know what it was so suffice to say there there was a big market for what they were doing so they get accepted into c everybody's excited they do i see that summer of oh seven and then later that fall they move out to san francisco which kind of is what drew had always wanted to do he wanted to follow zab dna out there so they move out to san francisco and they just finished why see and they need to raise funding neither is seed round so they end up meeting sequoia capital and this is where where things get interesting so there's a famous supposedly a famous meeting where where mike maritz the legendary investor at the time cohead of sequoia comes to their brand new office in san francisco on a saturday afternoon meets with them and and then sequoia decides to invest and then they signed term sheet and get it done the following monday all of which may be true but what doesn't get talked about a bunch.
"sequoia capital" Discussed on Crunch Report
"Daimler requires the majority stake in an for competitor in france sequoia capital next one could be a fivebilliondollar one also iced tea in the block chain it's thursday december 21st and this is crunch hey oh it's thursday hope you're all due in fantastic and getting ready for the holidays here's the news daimler has acquired a majority stake in show for priebke a french out that provides ride healing services in paris leon and the cote d'azur though ownership stake means at daimler now has controlling interests in a number of smaller uber competitors particularly operating in europe in meena including my taxi and karim dealer hopes to complete its acquisition of chauffeur privee by acquiring the remaining stakes in start up by 2019 terms of the deal with chauffeur pre they have not been disclosed but it will continue to operate post acquisition sequoia capital one of the most prestigious in wellknown d firms looking race a five billion dollar investment fund recode first reported the news of the fund they're hearing that sequoia is targeting five to six billion we're hearing that right now it's looking more like five billion dollars the fund raising is expected to get underway in the first quarter of 2018 sequoia capital you might know them from such a fan favorite says apple and what's up you look into raise the value of your company whatever you're doing take it shake it and blocked chain it and you too can be rich the long island iced tea corp change its name to long block chain corp and just like that the company shared soared by as much as five hundred percent in pre market trading this morning later settling back to about two hundred seventy five percent gain why did this happen who knows bitcoin crypto satochi life is weird remember you too can take it shake it and cloth chain osha had alive audience that report for today hit that like love insure this video and keep raging of.