Michael Moritz, Partner, Sequoia Capital | Summary and Q&A

TL;DR

Sir Michael Moritz discusses his career journey, from wanting to be a cricket player to becoming one of the top venture capitalists in the world. He also reflects on his upbringing as the child of refugees and the impact it had on his life.

Key Insights

• 👪 Personal experiences, such as Moritz's parents escaping Germany, can profoundly impact one's perspective and drive.
• ✋ The venture capital industry seeks to identify and develop high potential talent, similar to the approach of organizations like Manchester United in nurturing young athletes.
• 🌏 Silicon Valley remains a desirable place to start a company, but other regions like China and Southeast Asia are becoming increasingly vibrant.
• 🎚️ Diversity and representation in the technology and venture capital industries are crucial, but societal changes at the educational level are necessary to drive real progress.
• 🥺 The most successful investments often come from ideas that don't fit into existing categories and are initially seen as niche or unconventional. The unexpected can lead to extraordinary success.

Transcript

[MUSIC] You've clearly had a very impressive career but before becoming one of the- >> That's not what my mother says- >> [LAUGH] >> [LAUGH] >> Before becoming one of the top venture capitalists in the world, being knighted by the queen, you were a boy from Wales. What did you want to be when you grew up? >> Actually, not that this game or sport is... Read More

Questions & Answers

Q: How did Sir Michael Moritz's parents' experiences as refugees shape his early life?

His parents escaped Germany before World War II and their struggles and experiences influenced Moritz's understanding of anxiety, fear, and the importance of a welcoming country like the UK.

Q: Why did Moritz choose to come to the United States instead of Europe?

Moritz had limited professional opportunities in Europe, particularly due to the difficulties in strike-ridden Britain during the 1970s. An encounter with an editor convinced him to leave and pursue opportunities in America.

Q: What made Steve Jobs a unique innovator and leader?

Steve Jobs possessed exceptional salesmanship skills and a passion for his products and engineering. Despite his complicated personality, Jobs had an impressive ability to captivate and lead.

Q: How did Sir Michael Moritz transition from being a journalist to a venture capitalist?

Moritz grew frustrated with journalism and started a small company publishing newsletters on the technology industry. He had connections with people in the venture capital business and eventually joined Sequoia after multiple rejections.

Summary:

In this video, Sir Michael Moritz, a top venture capitalist and partner at Sequoia Capital, discusses his career, the impact of his family's refugee experience on his life, and the characteristics necessary for success in the venture capital industry. He also talks about the importance of diversity in the technology ecosystem and provides insights into the changing landscape of entrepreneurship and investment.

Questions & Answers:

Q: What did Sir Michael Moritz want to be when he grew up?

Sir Michael Moritz wanted to be a cricket player, but he was a coward and ended up avoiding the ball in sports like cricket and rugby. He later developed an interest in journalism during his time at Oxford.

Q: How did his parents' experiences as refugees shape him?

Sir Michael Moritz's parents escaped Germany before the second World War. Their experiences of escaping and the loss of family members during the war left a profound impact on him. He carries the anxiety and fear of losing everything with him, and it affects the way he lives his life.

Q: Why did Sir Michael Moritz decide to come to the United States?

Sir Michael Moritz didn't have many professional opportunities in Europe, especially during the difficult times in Britain before Margaret Thatcher. He wanted to work in journalism and had aspirations to work in the premiere league of Fleet Street newspapers. However, union restrictions prevented him from being hired by the big London newspapers. An encounter with an editor at the Daily Telegraph convinced him to go to America instead.

Q: What made Steve Jobs a unique innovator and leader?

According to Sir Michael Moritz, Steve Jobs was a spellbinding individual with exceptional salesmanship skills and product engineering attributes. He had a level of salesmanship that was on par with industry legend Lee Iacocca. Steve's obsession with his products and his ability to mesmerize people set him apart as a leader and innovator.

Q: How did Sir Michael Moritz make the switch from journalism to venture capital?

After leaving Time Magazine, Sir Michael Moritz started a company that published newsletters and organized technology industry conferences. Through his work, he met many people in the venture capital business. When he moved to California and became interested in venture capital, he wrote to five firms and got rejected by four of them. Don Valentine, the founder of Sequoia, decided to hire him despite skepticism from others in the industry.

Q: What value does a broad-based humanities education bring to venture capital?

Sir Michael Moritz shares his bias in favor of a broad-based humanities education in venture capital. He believes that in the investing business, it's challenging to be an expert in everything, so the ability to gather information, distill facts, form opinions, and make decisions is crucial. Storytelling and clear communication skills are also beneficial. While technical knowledge is valuable, it's not the only requirement for success in venture capital.

Q: What are the most important leadership traits needed to build enduring organizations?

According to Sir Michael Moritz, having a long-term vision, thinking and working in 20-year increments, and maintaining a trajectory while adapting to changing circumstances are essential. It's important to react to market conditions and make decisions along the journey. Patience, persistence, and the ability to grow organically and replenish talent are key traits for building enduring organizations.

Q: How does Sir Michael Moritz identify high-potential talent?

Sir Michael Moritz values the ability to identify talent when individuals are young and help them develop their skills. He believes that hiring young people who are willing to learn and have incredible loyalty is advantageous. The stability and organic growth of a team contribute to the success of an organization.

Q: What does obsession mean in entrepreneurship, and how does it feel?

Sir Michael Moritz provides examples of obsession from entrepreneurs he has worked with. He defines obsession as something that occupies your thoughts constantly, the last thing you think about before you go to sleep and the first thing you think about in the morning. It's an intense focus on a particular idea or business.

Q: Are there too many investment dollars chasing too few investable opportunities in the current funding environment?

Sir Michael Moritz believes that the venture capital industry has always been competitive, and there have always been limited opportunities for truly great companies. While there is an influx of capital in the market, he thinks there will always be opportunities for investments because truly exceptional companies stand out. He acknowledges that mistakes and misjudgments can happen, leading to challenges and the need to adapt.

Q: What responsibility does the venture industry have in fostering diversity in the technology ecosystem?

Sir Michael Moritz states that the responsibility of venture capital firms like Sequoia is to identify talent regardless of gender, background, or color. The industry should do its part in fostering diversity and is happy to support initiatives that help women and underrepresented groups in technology. However, he also highlights that change needs to happen at a broader societal level, starting from high schools and universities.

Q: Is Silicon Valley still the best place in the world to start a company?

Sir Michael Moritz asserts that Silicon Valley and China are the two best places in the world to start a company. While Silicon Valley has its challenges, such as high costs and regulations, it continues to be a fantastic and vibrant place for entrepreneurship. He also mentions the increasing entrepreneurial activity in Southeast Asia as an emerging and vibrant region.

Q: What problems or industries would Sir Michael Moritz focus on if he were in our shoes today?

Sir Michael Moritz suggests that the best investments are often the ones that don't fit into a convenient category. He advises looking for unexpected and unconventional opportunities, rather than following the buzz phrases of the moment. The most interesting investments are the ones that aren't immediately obvious and challenge the status quo.

Takeaways:

Sir Michael Moritz emphasizes several key takeaways from the discussion. These include the importance of having a broad-based education, the need for long-term vision and persistence in building enduring organizations, the value of talent identification and organic growth, the power of obsession in entrepreneurship, the ever-competitive nature of the venture capital industry, the responsibility to foster diversity, the significance of Silicon Valley and emerging regions for startups, and the pursuit of unconventional investment opportunities. He also acknowledges that luck plays a significant role in venture capital success.

Summary & Key Takeaways

• Sir Michael Moritz wanted to be a cricket player but ended up avoiding the ball during games. He later became interested in journalism and pursued it while at Oxford.

• His parents escaped Germany before World War II and their experiences as refugees shaped his early life and career aspirations. The anxiety and fear of losing everything remain ingrained in his perspective.

• Moritz decided to come to the United States instead of Europe because of limited professional opportunities in Europe at the time, particularly in the strike-ridden Britain of the 1970s.