sequoia capital

Jason is BACK with Molly to break down the news! They cover Sequoia leaving Citizen's board after passing on a "pay to play" round (5:46), two major companies reportedly going public in 2023: Instacart and ARM (27:11), and the recent turmoil at Dapper Labs (50:44).

(0:00) J+M tee up today's news show!

(2:25) Jason's back!

(5:46) Sequoia leaves the board of Citizen

(14:21) Squarespace - Use offer code TWIST to save 10% at https://Squarespace.com/TWIST

(15:51) How investors make the decision to pass on a "pay to play" round

(25:41) Contra - Get $500 off your first hire at https://contra.com/twist

(27:11) IPO window starts to open, Instacart prepares for IPO after big Q4

(35:42) Revelo - Get 20% off the first 3 months by mentioning TWIST at https://revelo.io/twist

(37:09) ARM prepares for IPO, reasons for CHIPS Act speed

(50:44) Chaos at Dapper Labs: reckless spending, securities lawsuit

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First, we cover an update from the BlockFi CEO denying that FTX is buying them for $25N (2:33), and we have a couple more crypto quick hits (5:51) before we touch on Sequoia's largest investments being down 70% (34:01). Klarna is raising way down at a $6B valuation (45:23), Zoom is looking to expand beyond video conferencing, (54:50), and the FCC approved Starlink to supply internet to moving vehicles (57:40). Finally, Rachel speaks with co-founder and CEO of Stages, Jared Downing, for this week's OK Boomer (1:08:23).

(0:00) Jason and Molly tee up today’s show!
(2:33) More info on BlockFi/FTX sale: CEO of BlockFi denied $25M sale to FTX
(5:51) Crypto exchange CoinFlex having public feud w/investor who had a reported $47M loan from the company
(12:34) Vanta - Get $1,000 off automating your SOC 2 at https://vanta.com/twist
(13:44) More on contracts
(17:40) CFTC charged Mirror Trading International for fraud over promise of passive income returning 10% a month
(26:44) Helpware - Go to https://helpware.com/TWIST to get $1000 off your first invoice
(27:54) OneCoin not on blockchain and had no real value
(32:43) BairesDev - Go to https://www.baires.dev/twist and get $10k off when you sign your first contract
(34:01) Two of Sequoia’s largest investments, Unity and DoorDash, have each fallen over 70% off their public peaks
(45:23 Swedish BNPL startup Klarna is raising at $6.5B - 1/7th of what they were valued June 2021
(51:48) Breaking: BlockFi says it will be bought by FTX for up to $240 million
(54:50) Zoom looking to expand outside of just video conferencing
(57:40) SpaceX gets new FCC Starlink authorization for trucks and boats!
(1:06:21) Producer Rachel tees up this week's OK Boomer segment
(1:08:23) OKB: Jared Downing, co-founder, and CEO of Stages (a live-streaming platform)
(1:28:43) Outro + Plugs (Bye Producer Justin! We'll miss you)

My guest today is Roelof Botha, a partner at one of the world’s oldest and most successful venture firms, Sequoia Capital. A few days ago before I sat down with Roelof, he announced Sequoia’s boldest innovation since the firm was founded by Don Valentine in the early 1970s. Going forward, the firm will break from the traditional VC mould of fund cycles and instead restructure around a single, open-ended, permanent structure named The Sequoia Fund.   In our conversation, we first discuss the details of this change from all different angles and then dive into Roelof’s career. We talk about what’s changed over the past twenty years, his days at PayPal, what legendary investors he’s worked with have had in common, and what he’s learned from being involved in businesses like Square, YouTube, and Unity.   Please enjoy this great conversation with Roelof Botha.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   ------   Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.    Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @patrick_oshag | @JoinColossus   Show Notes [00:02:53] - [First question] - What led Sequoia to change their structure [00:05:53] - Parallels between their approach and the problem Square set out to solve [00:07:36] - The mechanics of the new fund and how it’ll affect their clients [00:13:11] - What the future looks like and how public securities could be a dominant force [00:15:02] - Benefits and value-unlocks that the new fund offers that weren’t available before [00:16:55] - Comparing their structure to the current crossover funds we see emerging [00:18:21] - What alignment looks like in this new structure for LPs [00:22:02] - Cost of capital, interest rates, and their impacts on rates of return [00:25:39] - Changes in the industry and founders that he’s noticed [00:28:56] - What matters to him when meeting with young companies for the first time [00:31:47] - The importance placed on value creation over value capture in the early days [00:33:09] - Things that would dissuade him from partnering with a company [00:34:18] - What the growth and leadership at Square has taught him over the years [00:35:44] - Things he’s most excited about for payments looking forward [00:37:34] - How often a company lowering friction with technology appeals to him  [00:38:38] - Thoughts on Unity and its role in the growing trend of the metaverse [00:40:28] - Why the open and decentralized nature of the future is so beneficial [00:42:05] - Lessons learned about content and internet from working with YouTube [00:44:08] - The landscape of developers today and MongoDB's role in it  [00:49:26] - Learning to identify and hunt for crucible moments [00:50:50] - Curiosity is the key ingredient of a great investor [00:52:05] - What makes for a fantastic investment memo [00:53:20] - The most memorable investment memo he’s ever read [00:54:07] - Honing his leadership as his role has changed at Sequoia these past years [00:55:51] - Thoughts on Sequoia’s brand and the scope of his ambition [00:58:05] - What he’s most curious about in the world today [00:58:46] - What technology wants most from people today [01:01:13] - The difference between an accountant and an actuary's mindset and when each one is appropriate to inhabit [01:02:38] - Differences between talent and genius  [01:04:12] - Closing principals about business building he finds important to consider [01:06:17] - The kindest thing anyone has ever done for him

First, Jason covers Sequoia's VC-redefining transition to an evergreen fund (1:54). He continues Q3 earnings coverage with Robinhood (13:38) and Twitter (21:10). Then, Ryan Breslow from Bolt joins to discuss transitioning to a 4-day work week, open-sourcing their company handbook and running a startup effectively (28:07).