Doug Leone

I would say long-term thinkers with business sense. The thing we don't want to do is get a call from an LP. I hired a new analyst. Please give us all the investments you've done in odd year, every Tuesday of the month. We're not going to give you that. The other thing I tell LPs, ask the tough questions.

I would say long-term thinkers with business sense. The thing we don't want to do is get a call from an LP. I hired a new analyst. Please give us all the investments you've done in odd year, every Tuesday of the month. We're not going to give you that. The other thing I tell LPs, ask the tough questions.

Because I've learned from sales, a customer who's talking, a customer who's asking a tough question is an engaged customer. Sometimes they're a little more pissed, sometimes less, but they're talking. It's a customer that doesn't talk that you have to be terrified. You don't know what they're thinking. And sometimes LPs don't talk. They're afraid of upsetting Sequoia, getting fewer allocations.

Because I've learned from sales, a customer who's talking, a customer who's asking a tough question is an engaged customer. Sometimes they're a little more pissed, sometimes less, but they're talking. It's a customer that doesn't talk that you have to be terrified. You don't know what they're thinking. And sometimes LPs don't talk. They're afraid of upsetting Sequoia, getting fewer allocations.

And I remind them, you are the client. So you are the important side. And we build great LP relationships where we have no turnover. We have more and more than want to come in. Unfortunately, the funds are closed now. We have most large endowments, most foundations.

And I remind them, you are the client. So you are the important side. And we build great LP relationships where we have no turnover. We have more and more than want to come in. Unfortunately, the funds are closed now. We have most large endowments, most foundations.

And we have schools, schools that your friends, I don't know if you have kids I want to go to, that 20% of the endowment, not of the private equity side, the whole endowment is Sequoia. You want to talk about a responsibility because these people have scholarships they have to hand out, they have operating budgets and so on. So we feel that huge burden, huge.

And we have schools, schools that your friends, I don't know if you have kids I want to go to, that 20% of the endowment, not of the private equity side, the whole endowment is Sequoia. You want to talk about a responsibility because these people have scholarships they have to hand out, they have operating budgets and so on. So we feel that huge burden, huge.

Our culture at Sequoia is not to spit shine things. Our culture at Sequoia is to let them have the bad news. So first of all, any Sequoia pitch has returns on slide one, not slide 28 where you bury it. Slide one, welcome, here's returns. And they're net returns, not gross returns before fees. No, it's the money you get back. Slide two is probably the lowlights. Not the highlights, the lowlights.

Our culture at Sequoia is not to spit shine things. Our culture at Sequoia is to let them have the bad news. So first of all, any Sequoia pitch has returns on slide one, not slide 28 where you bury it. Slide one, welcome, here's returns. And they're net returns, not gross returns before fees. No, it's the money you get back. Slide two is probably the lowlights. Not the highlights, the lowlights.

Let me tell you everything that's screwed up. So once you have that conversation, first of all, they're blown away. The newbies are a little scared. Oh my God, I didn't know there were all these problems. But that builds trust because then they go to all the other meetings and they've sold a pile of shit. Here's our returns before marketing expenses. Like, what does that mean?

Let me tell you everything that's screwed up. So once you have that conversation, first of all, they're blown away. The newbies are a little scared. Oh my God, I didn't know there were all these problems. But that builds trust because then they go to all the other meetings and they've sold a pile of shit. Here's our returns before marketing expenses. Like, what does that mean?

So to me, the questions are the drill down questions. Are you doing too many things? When we went into China, oh, what do you guys do in China? Of course, they made a ton of money in China. When we vertically integrated, are you doing too many things? Well, we vertically integrated, but we have very small teams. Our family office maybe has 809 investors.

So to me, the questions are the drill down questions. Are you doing too many things? When we went into China, oh, what do you guys do in China? Of course, they made a ton of money in China. When we vertically integrated, are you doing too many things? Well, we vertically integrated, but we have very small teams. Our family office maybe has 809 investors.

A hedge fund in the US, seven or 809 investors. A venture team, about 10. So we decentralize things to empower the local people that know something. So even though it may be bigger, it's made up of very small team that are accountable to one another. At the end of the day, we will not put up with non-performance teams. We will shut down lines of businesses.

A hedge fund in the US, seven or 809 investors. A venture team, about 10. So we decentralize things to empower the local people that know something. So even though it may be bigger, it's made up of very small team that are accountable to one another. At the end of the day, we will not put up with non-performance teams. We will shut down lines of businesses.

First, appreciate that we are in a latency business. If you're in a hedge fund, you mark everything mark to market at the end of the day. We're in a business where cancers can grow and you may not see them for three years. Just think about that. So how do you drill down so you don't have to wait for two, three years?

First, appreciate that we are in a latency business. If you're in a hedge fund, you mark everything mark to market at the end of the day. We're in a business where cancers can grow and you may not see them for three years. Just think about that. So how do you drill down so you don't have to wait for two, three years?

to me, is establishing very clear norms of what performance is for someone who just joins us. Performance is for someone for two or three years. Someone just joins us. They have to figure it out with the bathrooms. It's a metaphor, but you know what I mean. Two or three years, can they source anything? Can they hold a meeting?

to me, is establishing very clear norms of what performance is for someone who just joins us. Performance is for someone for two or three years. Someone just joins us. They have to figure it out with the bathrooms. It's a metaphor, but you know what I mean. Two or three years, can they source anything? Can they hold a meeting?