Don Valentine's Sequoia Capital Playbook

We go through 5 aspects Sequoia's focuses on in Startup and the journey from $0 to $25 billion

Hey everybody welcome back to the Product Market Fit Newsletter 🚀

My name is Guillermo Flor and I write this weekly newsletter to help founders, growth professionals and product people to grow & fund their companies.

Now on this article I want to share:

• Sequoia’s Don Valentine playbook: 5 things to focus as a founder & VC &

• A Sequoia Startup Journey from $0 to $25billion

• Also check out:

  • How Don Invested in Steve Jobs:

    Steve Jobs' Fundraising Marathon

  • How to get your startup invested by Sequoia Capital:

    How to get your startup invested by Sequoia Capital

Now, before getting to work, just hit play👇

Don Valentine's Sequoia Capital Playbook

1. Target big markets

Focus on the Market, Don Valentine & Mike Vernal, Sequoia Capital

"We don't choose people; we choose markets."

• Think Big: Don emphasizes attacking big markets. If you're aiming to build a significant company, you need to solve problems in a large market. So, before you get too deep into product development, ask yourself: Is the market big enough?

• Understand the Problem: Identify a significant problem that a lot of people have. The bigger the problem, the more people will pay for a solution.

• Don't Obsess Over Credentials: It's not about where you went to school or your resume. It's about your understanding of the market and the problem you're solving.

  Don Valentine on targeting big markets

  

  Target Big Markets Don Valentine

2. Build Around a System or Platform

Build around a system, Don Valentine, Sequoia Capital

"We have always tried to go after a system."

• Think Ecosystem: Instead of focusing on a single product, consider how you can create or be part of a larger system or platform.

• Invest in Complementary Parts: Don didn't just invest in Apple; he also invested in disk drives, memory systems, and software that made the personal computer more valuable.

• Leverage Existing Technologies: Use what's already out there to build something better. Apple famously borrowed ideas from Xerox PARC to create its user-friendly interface.

Action Step: Identify how your product or service fits into a larger system. Can you collaborate with or build components that enhance a bigger platform?

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3. Master the Art of Storytelling

Master the Art of Storytelling, Don Valentine, Sequoia Capital

"Learning to tell a story is critically important because that's how the money works."

• Be Concise and Clear: Investors and customers need to understand your idea quickly. Don challenged entrepreneurs to write their business plan on the back of a business card!

• Engage Your Audience: Make your story compelling. Explain not just what you're doing, but why it matters.

• Ask and Answer the Right Questions: Be prepared to explain your market, your solution, and your plan succinctly.

Action Step: Practice pitching your idea in under a minute. Focus on the problem, your solution, and why it matters.

The money flows as a function of the story 🤯

The best storytelling framework: Joseph Campbell’s Hero Journey👇

Good storytelling makes the audience feel they are the protagonist.

To do so, I find the best framework to follow is the one humanity has used since the stone age: the Hero’s Journey 🦸