Tuesday, October 10, 2006


The deal between Google and YouTube brought attention to Sequoia Capital, the Silicon Valley venture capital firm that was an early investor in YouTube and that reaped a 40-fold return on its US$ 11 million investment in just over 20 months (that's a US$ 400-plus million gain in case you're wondering). This is not their first hit. They have been involved in the development of companies such as Apple, Yahoo, Cisco, Oracle, Google, Electronic Arts, to name a few. They sure know something about managing innovation and creating value. I especially like their profile of people whom they are willing to back. I quote from their website:
Underdogs: The collision of intelligence and ambition with opportunity is unbeatable. Almost everyone we have ever invested in has been a complete unknown at the time we met. Many have been immigrants or first generation Americans with barely a penny to their name. Underdogs are our favorite kind of people.

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